There is an increase in government expenditures financed by taxes and its overal

Question

There is an increase in government expenditures financed by taxes and its overall short-run By themselves, both the change in output and the change in the interest rate increase By themselves, both the change in output and the change in the interest rate decrease By itself, the change in output increases desired investment spending and by itself the By itself, the change in output decreases desired investment spending and by itself the Investment is a small part of real GDP, so it accounts for a small share of the fluctuation in real GDP. small part of real GDP, yet it accounts for a large share of the fluctuation in real GDP. large part of real GDP, so it accounts for a large share of the fluctuation in real GDP. large part of real GDP, yet it accounts for a small share of the fluctuation in real GDP. Other things the same, during recessions taxes tend to

Explanation / Answer

11. B i.e small part of GDP yet it accounts for a large share of the fluctuation in real GDP

Explanation : as defined

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