The value of the multiplier is necessarily increased if a. the marginal propensity to consume increases and the marginal propensity to import falls. b. the marginal propensity to consume falls and the tax rate falls. c. the marginal propensity to consume and the marginal propensity to import rise. d. the income tax rate falls and the marginal propensity to import rise.
The value of the multiplier is necessarily increased if a. the marginal propensity to consume increases and the marginal propensity to import falls. b. the marginal propensity to consume falls and the tax rate falls. c. the marginal propensity to consume and the marginal propensity to import rise. d. the income tax rate falls and the marginal propensity to import rise.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 1WNG
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The value of the multiplier is necessarily increased if
a.
the marginal propensity to consume increases and the marginal propensity to import falls.
b.
the marginal propensity to consume falls and the tax rate falls.
c.
the marginal propensity to consume and the marginal propensity to import rise.
d.
the income tax rate falls and the marginal propensity to import rise.
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