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If the MPS in an economy is 0.2. What is the tax multiplier? Group of answer choices a. 4 b. 5 c. -4 d. -5

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter11: Fiscal Policy And The Federal Budget

Section: Chapter Questions

Problem 7QP

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Question

If the MPS in an economy is 0.2. What is the tax multiplier?

Group of answer choices

a. 4

b. 5

c. -4

d. -5

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