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Business, 03.07.2020 21:01 bandnerd1

Questions about the tax multiplier: 1. Suppose the marginal propensity to consume (MPC) for a nation is 0.7. What is the tax multiplier for this nation?
2. What is the tax multiplier for this nation if a $150 increase in taxes reduces real GDP by $450?
3. How much will real GDP change if the tax multiplier is-9 and taxes are reduced by $200?

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