Which of the following statements is false ?
A. The balanced budget multiplier is unity when taxes are lump sum taxes.
B. The balanced budget multiplier is less than unity when taxes are ad valorem taxes.
C. Tax multiplier is less than government expenditure multiplier.
D. Tax multiplier is more than government expenditure multiplier.
Answer:D
Which of the following statements is false ?
A. The balanced budget multiplier is unity when taxes are lump sum taxes. B. The balanced budget multiplier is less than unity when taxes are ad valorem taxes. C. Tax multiplier is less than government expenditure multiplier. D. Tax multiplier is more than government expenditure multiplier.