Answered: If the MPS in an economy is 0.2. What…

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If the MPS in an economy is 0.2. What is the tax multiplier? Group of answer choices a. 4 b. 5 c. -4 d. -5

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

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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Question

If the MPS in an economy is 0.2. What is the tax multiplier?

Group of answer choices

a. 4

b. 5

c. -4

d. -5

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