The various studies of the size of the fiscal multiplier by different economists suggest
A) general agreement that the fiscal multiplier value is relatively high.
B) general agreement that the fiscal multiplier value has a range between 0.8 and 1.2.
C) general agreement that the fiscal multiplier value is zero.
D) there is a wide range of opinion on the size of the fiscal multiplier.
Ans: D) there is a wide range of opinion on the size of the fiscal multiplier.
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A decrease in government transfer payments
A) increases aggregate demand. B) increases the aggregate quantity demanded. C) decreases the aggregate quantity demanded. D) decreases aggregate demand.
Brazil's export record in 1999 illustrated the principle that
A) a large country will tend to have few exports. B) a small country will tend to have a high export ratio. C) protectionist policies tend to discourage exports. D) export-promoting policies do not tend to work. E) import substitution policies helped the Brazilian economy.