The multiplier for taxes can be calculated using which formula?
A) (1- MPC) /MPC
B) - MPC/(1- MPC)
C) 1/(1- MPC)
D) 1/MPC
Correct Answer:
Verified
Q132: Which of the following is not an
Q133: Q134: The presence of automatic stabilizers means that Q135: An increase in the price level will: Q136: During recessions, government spending usually: Q138: Assume that the consumption function is C Q139: Assume there is no government or foreign Q140: Recall Application 4, "The Locomotive Effect: Why Q141: If the government collects taxes using a Q142: The level of consumption that does not
A)
A) decrease because
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