Mathematically, the Value of the Tax Multiplier in Terms of the Marginal

question 26

Multiple Choice

Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:

• A) MPC − 1.
• B) (MPC − 1) / MPC.
• C) 1 / MPC.
• D) 1 − [1 / (1 − MPC)].

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Positive Net Present Value

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Quarterly Basis

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