Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
a. MPC ? 1.
b. (MPC ? 1) / MPC.
c. 1 / MPC.
d. 1 ? [1 / (1 ? MPC)].
d
Economics
You might also like to view...
A decrease in the reserve ratio will
A) cause the money supply to decrease. B) cause the money supply to increase. C) not affect the money supply. D) decrease the money multiplier.
Economics
The minimum price the firm would accept in the short run would be
A. $25.
B. $50.
C. $70.
D. $80.
Economics