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Homework answers / question archive / A Read aloud Draw Section 1: Multiple Choice Questions 20 marks Fach question is worth 4 marks, 5 marks for a correct answer and I mark for your explanation/calculation of your chansen answer 1
A Read aloud Draw Section 1: Multiple Choice Questions 20 marks Fach question is worth 4 marks, 5 marks for a correct answer and I mark for your explanation/calculation of your chansen answer 1. Which of the following statements is FALSE? A Kasusterity policy can be implemented by raising taxes or cutting public spending B The multiplier of fiscal stimulus is higher when the economy is operating below fully capacity A lehet marginal propensity to import can hinder the efficacy of a fiscal stimulus D. Maintaining a fiscal balance during a recession helps stabile the economy A higher tax rate shnk the the multiplier and the following statements TRUE? if whole neopate that goverment pendant will be felly higher than I thical policy to the smaller the
20 m a question is worth 4 marks, 3 marks for a correct answer and 1 mark for your explanation/calculation of your Sen answer Which of the following statements is FALSE? A. An austerity policy can be implemented by raising taxes or cutting public spending. B. The multiplier of fiscal stimulus is higher when the economy is operating below fully capacity. A higher marginal propensity to import can hinder the efficacy of a fiscal stimulus. D. Maintaining a fiscal balance during a recession helps stabilise the economy. A higher tax rate shrinks the size of the multiplier. Which of the following statements is TRUE I households antiepate that layer wernment spending will be followed by lighur takes in futun, hen ucun savings will deerense 3 Ilumni anticipate that the wernment fiscal policy will be effective, then smaller stimule will be requin Alte stezers reduce the colle muldan migratie ale Paradoxoftheme of the reason why private mesto premsurance in stor Soethe
Question 1- Which of the statement is False?
Answer -The correct answer is Option B, that is:
"The multiplier of fiscal stimulus is higher when the economy is operating below full capacity" which is not true as because multiplier is a ratio of change in national income and goverment spending so when the economy will operate below full capacity it will not increase any of the 2.
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