The magnitude of the tax multiplier is smaller than the magnitude of the government expenditure multiplier because
A) a change in taxes does not change expenditures.
B) an increase in taxes decreases expenditures.
C) a decrease in government expenditure decreases tax revenue.
D) a change in taxes does not change expenditures by as much as the same size change in government expenditure.
E) a change in taxes creates additional induced taxes.
D
Economics
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a. True b. False Indicate whether the statement is true or false
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