Which of the following reduces the magnitude of the expenditure multiplier?
A) higher marginal tax rates
B) decrease in imports
C) decrease in saving
D) decrease in government purchases of goods and services
E) decrease in the marginal propensity to consume
Correct Answer:
Verified
Q197: Q198: In an economy with no income taxes Q199: Q200: If a $2 billion increase in investment Q201: As the economy turns the corner into Q203: The smaller the slope of the aggregate Q204: The _ the marginal tax rate, the Q205: _ can trigger an expansion. Q206: If a country has an expenditure multiplier Q207: The multiplier effect
A) An increase
A) explains what causes a
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