If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary the:

Name: If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary the:
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A tax cut will be more expansionary if the marginal propensity to save (MPS) is smaller, because this implies a larger marginal propensity to consume (MPC), leading to a greater increase in consumption and aggregate demand.

If a Government Wants to Pursue an Expansionary Fiscal Policy