When change in the government expenditure (G) =2, change in the tax (T) =2, what will be impact of fiscal policy on change of consumption ( C)?
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JNU SSS 2021 Question 25: Keynesian cross and the multiplier
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When change in the government expenditure (Δ G) =2, change in the tax (Δ T) =2, what will be impact of fiscal policy on change of consumption (Δ C)? (A) 0 (B) 1 (C) 2 (D) 3
Also written as: When change in the government expenditure (Delta G) =2, change in the tax (Delta T) =2, what will be impact of fiscal policy on change of consumption (Delta C)?
Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on The balanced budget multiplier, part of Keynesian cross and the multiplier in Macroeconomics.
Why raising spending and taxes by the same amount still raises income.
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