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Author Question: If the MPSis 0.2, the tax multiplier is (Read 49 times)

Engineer

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Question 1

The formula for the government spending multiplier is


◦ 1/(1 + 
MPC).
◦ 1/
MPS.
◦ 1/
MPC.
◦ 1/(1 + 
MPS).

Question 2

If the 
MPS is 0.2, the tax multiplier is


◦ -1.11.
◦ -4.
◦ -5.
◦ -9.


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Marked as best answer by Engineer on Apr 19, 2019

carojassy25

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Reply #1 on: Apr 19, 2019
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Engineer

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Reply #2 on: Apr 19, 2019
Excellent



carojassy25

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Reply #3 on: Apr 19, 2019
Great! Please up vote :D



 

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