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The formula for the tax multiplier is: -MPS/MPC. MPS/MPC. -MPC/MPS. -1/
The formula for the tax multiplier is: -MPS/MPC. MPS/MPC. -MPC/MPS. -1/
MPS
. QUESTION 27 In the consumption function
C
=
Ca
+
bY
, the term
Ca
represents: the multiplier effect. the marginal propensity to consume. the autonomous consumption spending. the marginal propensity to save.
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