contestada

Which of the following statements is false? Question 21 options: Not all economists are agreed as to whether government should bail out companies in financial trouble. Not all economists prefer a rule-based monetary policy to discretionary monetary policy. Rule-based monetary policy advocates often assert that discretionary monetary policy can be motivated by politics. The tax multiplier is always larger than the government spending mult

Respuesta :

Answer:

The tax multiplier is always larger than the government spending multiplier

Explanation:

As we know that

Tax multiplier =  mpc ÷ (1 - mpc)

Here mpc means marginal propensity to consume

And,  

Government spending multiplier= 1 ÷ (1  - mpc)

So based on this the government spending multiplier should always be more than the tax multiplier

Therefore the last option should be considered  

Otras preguntas