Multiple Choice
Two economists,A and B,believe that the economy currently needs a strong dose of expansionary fiscal policy.Economist A wants to cut taxes while economist B wants to raise government spending.It is probably the case that
A) Economist A believes the tax multiplier is larger than the government spending multiplier.
B) Economist B believes the government spending multiplier is equal to the tax multiplier.
C) Economist A believes the tax multiplier is smaller than the government spending mutiplier.
D) Economist B believes the tax multiplier is larger than the government spending multiplier.
E) a and d
Correct Answer:

Verified
Correct Answer:
Verified
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