What is the formula for the multiplier that results from a change in autonomous net taxes?
A) -MPC/(1 - MPC)
B) MPC/(1 - MPC)
C) 1/(1 - MPC)
D) -1/(1 - MPC)

Name: What is the formula for the multiplier that results from a change in autonomous net taxes? A) -MPC/(1 - MPC) B) MPC/(1 - MPC) C) 1/(1 - MPC) D) -1/(1 - MPC)
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Question

What is the formula for the multiplier that results from a change in autonomous net taxes?  
A) -MPC/(1 - MPC) 
B) MPC/(1 - MPC) 
C) 1/(1 - MPC) 
D) -1/(1 - MPC)

Quizplus · Accepted Answer

The tax multiplier is given by the formula -MPC/(1 - MPC), where MPC is the marginal propensity to consume.

What Is the Formula for the Multiplier That Results from a Change