To solve the question about the balanced budget multiplier, we need to understand the concept in business economics:

- The balanced budget multiplier refers to a situation where government spending increases and taxes increase by the same amount. This results in a change in the national income.

- In simple terms, with the balanced budget multiplier, when government spending (G) and taxes (T) are increased by the same amount, the overall effect on national income or output is theoretically equal to the amount of the increase in spending, provided the economy is closed and there are no other leakages. This phenomenon occurs due to the marginal propensity to consume.

Explanation of Options:

• Option A: "Output increases less than the increase in government spending." - This is incorrect as, theoretically, with a balanced budget, the output increases exactly matching the change in spending (equal to when ΔG = ΔT).
• Option B: "Output increases more than the increase in government spending." - This is incorrect as the output increase equals the government spending increase, not more.
• Option C: "Government spending and taxes are raised in equal amounts." - This is a defining characteristic of the balanced budget multiplier.
• Option D: "The value of multiplier is equal to 1." - This is correct as the balanced budget multiplier accurately reflects an increase in output equal to the increase in government spending (ΔY = ΔG).

Conclusion:

The correct answer is C and D Only. This corresponds with the concept that a balanced budget multiplier results in government spending and taxes being raised in equal amounts and the multiplier value being 1.