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Which of the following statements is correct: A) in an open economy with induced taxes the tax multiplier is always positive B) the autonomous expenditure
Which of the following statements is correct:
A) in an open economy with induced taxes the tax multiplier is always positive
B) the autonomous expenditure multiplier rises when the marginal propensity to consume rises
C) the autonomous expenditure multiplier in an open economy with induced taxes is smaller than the same multiplier in an open economy with no induced taxes
D) the balanced budget multiplier is always negative
E) the transfer payments multiplier is equal to the expenditure multiplier with a negative sign
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