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Which one of the following about the multiplier model is most appropriate? Select one: a. Equilibrium consumption will be unaffected if tie government expenditure increases

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Which one of the following about the multiplier model is most appropriate? Select one: a. Equilibrium consumption will be unaffected if tie government expenditure increases More than one of these statements are correct Fiscal policy has no effect on financial markets In a recession, a government with a budget surplus should reduce expenditures to keep the balance sheet stable In a recession, monetary policy is usually more responsive, and the central bank should keep the interest rate low to stimulate investment

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