Introduction to Economics 2 Deneme Sınavı Sorusu #350018

What is the value of net multiplier when changes in government expenditures are met totally by changes in taxes?


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Yanıt Açıklaması:

When public expenditure increase is financed totally via taxes, the level of income increases is equal to expenditure increase. In case of changes in public expenditures and taxes are the same, the numerical value of net multiplier being equal to 1 is called as balanced budget multiplier.

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