What is the formula for the simple tax multiplier?
A) 1/MPC
B) MPC/(1 - MPC)
C) 1/(1 - MPC)
D) -MPC/(1 - MPC)
Correct Answer:
Verified
Q44: How is aggregate expenditure affected when net
Q45: Suppose autonomous taxes and transfer payments each
Q46: Which of the following will NOT increase
Q47: Suppose autonomous net taxes increase by $200
Q48: How does a decrease in autonomous net
Q50: What is the formula for the multiplier
Q51: Suppose the MPC equals 0.8.What is the
Q52: Suppose autonomous net taxes decline by $40
Q53: Suppose a $100 autonomous net tax is
Q54: Suppose the government decreases net autonomous taxes
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