Question

QUESTION 26 In any country the multiplier effect tells us that: O A. If investments increase Tax revenue will increase B. if investments increase savings will increase C. if investments increases GDP will increase OD. If investments increase consumption will increase QUESTION 27 Which of the following statements is true? A. In Pasadena if government spending is $ 1000 billion and tax revenue is $ 800 billion then Pasadena has a budget surplus OB. in Pasadena if government spending is $ 1000 billion and tax revenue is $ 800 billion then Pasadena has a recession OC. In Pasadena if government spending is $ 1000 billion and tax revenue is $ 800 billion then Pasadena has a budget deficit in Pasadena if government spending is $ 1000 billion and tax revenue is $ 800 billion then Pasadena has a contractionary fiscal policy D.

Answer 1

Answer

26.

economic multipliers always indicate to what factor the economy will increase its output.

27.

As the revenue is lesser than the expenditure, the government has a budet deficit.

28.

The money multiplier is 1/Reserve ratio

29.

there are currently 8 members and each serving 10 years./

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