Author Question: In the Keynesian model, a. the autonomous expenditure multiplier is lower than the tax ... (Read 6 times)

Collmarie · **on:** Jun 30, 2018

In the Keynesian model,

a. the autonomous expenditure multiplier is lower than the tax multiplier.
b. the autonomous tax multiplier is positive and large.
c. the autonomous tax multiplier is larger (in absolute value) than the tax multiplier.
d. the tax multiplier is equal to 1.
e. none of the above.

Question 2

According to classical economists,

a. money was a veil that determined the nominal values in which such variables as the level of economic activity were measured.
b. money can have a temporary impact on output.
c. it is the nominal interest rates that matters in decisions to save and invest.
d. Both a and b
e. Both a and c