Derive multiplier for a change in the government purchase and the taxes. Why is the tax multiplier smaller than the government purchase multiplier?
Derive multiplier for a change in the government purchase and the taxes. Why is the tax multiplier smaller than the government purchase multiplier?
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.5P: Explain the difference between the government purchases multiplier and the net tax multiplier. If...
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Derive multiplier for a change in the government purchase and the taxes. Why is the tax multiplier smaller than the government purchase multiplier?
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