Question

The 'Balanced Budget Multiplier' suggests that an equal increase in government spending and taxes will:

A Have no effect on national income.
B Decrease national income.
C Increase national income by the amount of the spending increase.
D Increase national income by more than the spending increase.
E Decrease national income by the amount of the tax increase.
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)