The expenditure multiplier only considers the impact of consumption changes on aggregate expenditures.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Compared to the government in a typical industrial country, the government in a typical developing country:
a. plays the same role in investment spending.
b. plays a larger role in investment spending.
c. plays a smaller role in investment spending.
d. plays no role in investment spending.
e. plays a more negative role in investment spending.
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