If the marginal propensity to consume is zero, a temporary tax increase leads to a small decrease in inflation in the short run but a large decrease in inflation in the long run. Answer True or False. Remember to include your explanation
If the marginal propensity to consume is zero, a temporary tax increase leads to a small decrease in inflation in the short run but a large decrease in inflation in the long run. Answer True or False. Remember to include your explanation
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Fiscal Policy: The Keynesian View And Historical Development Of Macroeconomics
Section: Chapter Questions
Problem 9CQ
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If the marginal propensity to consume is zero, a temporary tax increase leads to a small decrease
in inflation in the short run but a large decrease in inflation in the long run.
Answer True or False. Remember to include your explanation
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