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Author Question: As the tax rate decreases, the absolute value of the tax multiplier (Read 38 times)

BrownTown3

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Question 1

As the tax rate decreases, the government spending multiplier


◦ increases.
◦ decreases.
◦ does not change.
◦ could either increase or decrease depending on the value of the 
MPC.

Question 2

As the tax rate decreases, the absolute value of the tax multiplier


◦ increases.
◦ decreases.
◦ does not change.
◦ could either increase or decrease depending on the value of the 
MPC.


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Marked as best answer by BrownTown3 on Apr 19, 2019

morrie123456

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BrownTown3

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


matt95

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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