Economics · Keynesian Macroeconomics
In the case of a balanced budget multiplier, which of the following statements are correct? A. Output increases less than the increase in government spending. B. Output increases more than the increase in government spending. C. Government spending and taxes are raised in equal amounts. D. The value of the multiplier is equal to 1. Choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1B and D only
- 2A, B and C only
- 3B and C only
- 4C and D only✓
Correct answer
C and D only
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Keynesian Macroeconomics MCQs →Want more practice questions on Keynesian Macroeconomics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Keynesian Macroeconomics