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Author Question: Assume that taxes depend on income and the MPCis 0.8 and tis 0.4. An increase in taxes of $10 ... (Read 90 times)

tfester

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  • Posts: 534
on: Apr 19, 2019

Question 1

If taxes depend on income and the 
MPC is 0.8 and 
t is 0.4, the tax multiplier is


◦ -1.54.
◦ -1.92.
◦ -2.5.
◦ -2.7.

Question 2

Assume that taxes depend on income and the 
MPC is 0.8 and 
t is 0.4. An increase in taxes of $10 billion will decrease equilibrium income by


◦ $15.4 billion.
◦ $19.2 billion.
◦ $25 billion.
◦ $27 billion.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by tfester on Apr 19, 2019

Athena23

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tfester

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  • Posts: 534
Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

nyrave

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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