Economics · Macroeconomics
The Balanced Budget Multiplier strictly equals 1 under which of the following standard assumptions?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The tax base is extremely narrow
- 2Taxes are highly regressive
- 3The multiplier ratio ΔYΔG is negative
- 4Transfer payments are zero and taxes are autonomous (lump-sum)✓
Correct answer
Transfer payments are zero and taxes are autonomous (lump-sum)
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 Macroeconomics MCQs →Want more practice questions on Macroeconomics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Macroeconomics