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Question Practice

What does the government spending multiplier indicate?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Government Budget And The Economy
Question Bank

What does the government spend...

Single Answer MCQ
Q-00089167

What does the government spending multiplier indicate?

1

The rate at which government debt increases

2

The change in total income resulting from an initial change in government spending

3

The relationship between taxes and revenue

4

The effect of taxes on private consumption

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