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19-07-2022
Business

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5. what would happen to the marginal propensity to save when a tax cut was enacted causing the multiplier to change to 5?

Respuesta :

Talanat Talanat

19-07-2022

Answer:

1/6

Explanation:

Tax multiplier us mpc/1-mpc

so as multiplier is 5 ,

5=mpc/1-mpc

so mpc 5/6

this means mps= 1-5/6

this is equal to 1/6

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