The government purchases multiplier will be larger if the ...

[swpotter12]

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]

Answer to Question 1

TRUE

Answer to Question 2

A