The real-world money multiplier is greater than the simple money multiplier (1/RR)

Explain why the tax multiplier is different from the government purchases multiplier, in both sign and relative magnitude

What will be an ideal response?

Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold

A) marginal benefit is equal to marginal cost. B) the deadweight loss is equal to economic surplus. C) producer surplus equals consumer surplus. D) the marginal benefit of each of the 20,000 units of iced tea equals $3.