The various studies of the size of the fiscal multiplier by different economists suggest
A) general agreement that the fiscal multiplier value is relatively high.
B) general agreement that the fiscal multiplier value has a range between 0.8 and 1.2.
C) general agreement that the fiscal multiplier value is zero.
D) there is a wide range of opinion on the size of the fiscal multiplier.
Ans: D) there is a wide range of opinion on the size of the fiscal multiplier.
You might also like to view...
If an increase of $10 billion of investment results in an increase in equilibrium expenditure of $40 billion, the multiplier equals
A) $10 billion ÷ $40 billion = 0.25. B) $40 billion - $10 billion = $30 billion. C) $10 billion × $40 billion = $400 billion. D) $10 billion - $40 billion = -$30 billion. E) $40 billion ÷ $10 billion = 4.
In a closed economy, the goods market is in equilibrium when
A) Y = S + I + G. B) C + S = I + G. C) C + I = S + G. D) Y = C + I + G.
Government spending shrank the most in _____ relative to GDP between 1997 and 2016
a. Canada b. Australia c. Germany d. Spain e. the U.K.
Macroeconomics deals with
A. the what, who, and how questions faced by any economy B. the role of prices and markets in allocating outputs C. the determinants of aggregate output, overall levels of prices and inflation, growth, etc. D. all of the above