If the marginal propensity to consume is 0.8, the multiplier for taxes and transfer payments will be more than 5.
Correct Answer:
Verified
Q293: The effect of automatic stabilizers is to
Q294: The Works Progress Administration, a government program
Q295: A budget deficit necessarily indicates that fiscal
Q296: If policy makers want to decrease real
Q297: If government purchases decrease so the budget
Q299: If the marginal propensity to consume is
Q300: The tax multiplier for someone living below
Q301: If the government were required to balance
Q302: The cyclically balanced budget is an estimate
Q303: Lower government transfers or higher taxes make
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents