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Author Question: When the MPCis 0.8 and t is 0.4, then the government spending multiplier is about -1.54. (Read 107 times)

Caiter2013

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Question 1

When taxes depend on income, a higher tax rate implies a higher government spending multiplier.


◦ true
◦ false

Question 2

When the 
MPC is 0.8 and t is 0.4, then the government spending multiplier is about -1.54.


◦ true
◦ false


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Marked as best answer by Caiter2013 on Apr 19, 2019

mathjasmine

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mathjasmine

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