Social Studies, 10.03.2020 07:40 anaemigarcia
All else equal, how would an increase in the tax rate affect the government purchases multiplier? It increases the multiplier only if the marginal propensity to consume ( M P C ) is greater than the tax rate. It increases the multiplier only if the marginal propensity to consume ( M P C ) is less than the tax rate. It decreases the government purchases multiplier. It increases the government purchases multiplier. It has no effect.
Answers: 2
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All else equal, how would an increase in the tax rate affect the government purchases multiplier? It...
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