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balanced budget multiplier (E2, E6)<br />A measure of the expansion or contraction of NATIONAL INCOME which OCCurS despite an equal change in the revenue and expenditure of a government. An expansion in national income is possible where the PROPENSITY TO CONSUME of a government is greater than the private sector's. If the government taxed ?100 million of personal income at 30 per cent, it would receive revenue of ?30 million which, if spent in its enti rety, would be a greater addition to total demand than if the tax was not raised but was left with persons who habitually saved 20 per cent of their incomes.
bilateral monopoly (Ll)<br />A market consisting of a MONOPOLIST and a
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