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Author Question: When taxes are a function of income, the investment multiplier, government spending multiplier, and ... (Read 130 times)

justinmsk

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Question 1

If the 
MPS is 0.8 and 
t is 0.3, then the tax multiplier is about -1.03.


◦ true
◦ false

Question 2

When taxes are a function of income, the investment multiplier, government spending multiplier, and tax multiplier are all less than they would be if taxes were a lump sum amount.


◦ true
◦ false


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Marked as best answer by justinmsk on Apr 19, 2019

daiying98

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