Induced taxes and needs- tested spending decrease the multiplier effects.

Name: Induced taxes and needs- tested spending decrease the multiplier effects.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Induced taxes take away from disposable income, reducing spending and the multiplier effect. Needs-tested spending, on the other hand, has a smaller multiplier effect since it is targeted towards those with lower income who are more likely to save or pay off existing debts rather than spend the money.

Induced Taxes and Needs- Tested Spending Decrease the Multiplier Effects