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Author Question: Taxes are reduced by $70 billion and income increases by $280 billion. The value of the tax multiplier is (Read 84 times)

Shelles

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Question 1

If the 
MPS is 0.5, the tax multiplier is


◦ -5.
◦ -2.
◦ -1.
◦ -0.5.

Question 2

Taxes are reduced by $70 billion and income increases by $280 billion. The value of the tax multiplier is


◦ -4.
◦ -5.
◦ -10.
◦ -20.


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Marked as best answer by Shelles on Apr 19, 2019

macagn

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Shelles

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Reply 2 on: Apr 19, 2019
Excellent


softEldritch

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Reply 3 on: Yesterday
Gracias!

 

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