A reason the government expenditure multiplier is larger than 1 is because
A. investment increases when government expenditure increases.
B. government expenditure always increases.
C. government expenditure generates changes in consumption expenditure.
D. taxes are left unchanged.
Answer:C
A reason the government expenditure multiplier is larger than 1 is because
A. investment increases when government expenditure increases. B. government expenditure always increases. C. government expenditure generates changes in consumption expenditure. D. taxes are left unchanged.