As the MPC increases, the absolute value of the tax multiplier increases.
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Q323: If taxes depend on income, then the
Q324: If the MPC is 0.9, the tax
Q325: Assume that taxes depend on income. The
Q326: If the MPS is 0.1, the tax
Q327: [-(MPC/MPS)] is the formula for the
A) consumption
Q329: The value of the balanced-budget multiplier is
A)
Q330: Assume that taxes depend on income. The
Q331: The balanced-budget multiplier works whenever the government
Q332: The tax multiplier is a negative multiplier.
Q333: As the MPC decreases, the government spending
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