Macro

Government Budget

Medium

The government expenditure multiplier is calculated by which of the following:

$1/1-t (1 + c)$

$-c/1-c$

$1/1-c(1 - t)$

$1/mps$

✅ Correct Option: 3

With a proportional income tax at rate $t$ , disposable income is $(1-t)Y$ and consumption is $c(1-t)Y$ . Equilibrium gives $Y = \bar{A} + c(1-t)Y$ , so $\Delta Y/\Delta G = \frac{1}{1-c(1-t)}$ . This is the government expenditure multiplier with taxes.

2022: 19 July Shift 2

Public Goods are always :

2025: 16 May Shift 1

Which of the following is a debt creating capital receipt of the government?

2025: 30 May Shift 1

Identify which of the following is an example of non-debt capital receipts.

2022: 30 Aug Shift 2

Wealth tax and gift tax have never bought in large amount of revenue for the government and thus are referred to as _______.

2026: 11 May Shift 2

Which of the following will be part of Revenue Expenditure?

A. Subsidies on exports.

B. Interest payments on debt incurred by the government.

C. Loans and advances by the central government to state government.

D. Salaries paid to the government employees.

Choose the correct answer from the options given below:

2025: 21 May Shift 1

Which of the following is not an advantage of GST?

The government expenditure multiplier is calculated by which of the following:

Solution

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