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Introduction to Economics 2
Introduction to Economics 2 Deneme Sınavı
Introduction to Economics 2 Deneme Sınavı Sorusu #349731
Introduction to Economics 2 Deneme Sınavı Sorusu #349731
I. Expenditure multiplier, as an absolute value, is bigger than the tax multiplier
II. While increases in public expenditures reduce income, decreases in public expenditures magnify income.
III. The effect of taxes on expenditures shows itself indirectly.
Which of the statement(s) given above is /are true?
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I and II
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II and III
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Only I
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Only II |
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I and III |
Yanıt Açıklaması:
The correct versions of the statements should be as follows:
Expenditure multiplier, as an absolute value, is bigger than the tax multiplier.
While increases in public expenditures magnify income, decreases in public expenditures reduce income.
The effect of taxes on expenditures shows itself indirectly.
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