Comparing the simple Keynesian model with the IS-LM model, in the IS-LM model a. the balanced budget multiplier is larger. b. the government spending multiplier is larger. c. the tax multiplier is smaller. d. there is no difference between any of the multipliers.
Comparing the simple Keynesian model with the IS-LM model, in the IS-LM model a. the balanced budget multiplier is larger. b. the government spending multiplier is larger. c. the tax multiplier is smaller. d. there is no difference between any of the multipliers.
Chapter21: Fiscal Policy
Section: Chapter Questions
Problem 20SQ
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Comparing the simple Keynesian model with the IS-LM model, in the IS-LM model
a.
the balanced budget multiplier is larger.
b.
the government spending multiplier is larger.
c.
the tax multiplier is smaller.
d.
there is no difference between any of the multipliers.
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