If the marginal propensity to consume is 0.55, the tax multiplier is:
A) - 1.22.
B) - 2.33.
C) - 2.22.
D) - 3.33.
Correct Answer:
Verified
Q189: Disposable income:
A) increases when income increases.
B) decreases
Q190: If the consumption function is C =
Q191: If the economy finds itself at a
Q192: Assume there is no government or foreign
Q193: The existence of automatic stabilizers causes:
A) the
Q195: If the marginal propensity to save is
Q196: If you save $20 when you experience
Q197: If the economy finds itself at a
Q198: If the government collects taxes using a
Q199: An increase in the marginal propensity to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents