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Business, 06.05.2021 20:30 zaire8

The multiplier effect of an increase in government purchases of goods and services is larger than the multiplier effect of a tax cut because: A. initially some of the tax cut will be saved while all of the government purchases will be spent. B. many households fail to file their income tax and claim their refund. C. the government pays a higher price than households for the same goods and services. D. production of the goods and services the government purchases has a bigger impact on real GDP than production of consumer goods.

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