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Author Question: Assume that taxes depend on income. The MPCis 0.8 and tis 0.2. The government spending multiplier is (Read 134 times)

Kthamas

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  • Posts: 546
on: Apr 19, 2019

Question 1

Assume that taxes depend on income. The 
MPC is 0.5 and 
t is 0.5. The government spending multiplier is


◦ 1.33.
◦ 2.
◦ 2.5.
◦ 4.

Question 2

Assume that taxes depend on income. The 
MPC is 0.8 and 
t is 0.2. The government spending multiplier is


◦ 1.25.
◦ 2.78.
◦ 4.
◦ 4.17.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Kthamas on Apr 19, 2019

Carissamariew

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Reply #1 on: Apr 19, 2019
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Kthamas

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Reply 2 on: Apr 19, 2019
Wow, this really help

sultana.d

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Reply 3 on: Yesterday
:D TYSM

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