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Author Question: The government purchases multiplier will be larger if the marginal income tax rate decreases. ... (Read 45 times)

swpotter12

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on: Jun 29, 2018
The government purchases multiplier will be larger if the marginal income tax rate decreases.
 
  Indicate whether the statement is true or false

Question 2

Calculate the government purchases multiplier if the marginal propensity to consume equals 0.8, the tax rate is 0.1, and the marginal propensity to import equals 0.2.
 
  A) 2.1 B) 1.9 C) 1.7 D) 1.4


poopface

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

A


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