Macroeconomics
Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 18.10, Problem 2ST
To determine

Reason for economist who believes that the government spending multiplier is larger than the tax multiplier

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According to the standard textbook Keynesian analysis, which is greater: the tax multiplier or the government spending multiplier?  Explain the reasoning behind this relationship.
According to Keynesian economics, what impact would a balanced budget amendment to the constitution requiring the federal government to balance its budget annually have on the economy?
According to Keynesian  economics, what impact would a balanced budget  amendment to the constuition requiring the federal government to balance its budget annually have on the economy?
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