Find the Tax Multiplier If the MPC Is 0

question 45

Multiple Choice

Find the tax multiplier if the MPC is 0.75.

• A) − 4.
• B) − 3.
• C) 0.33.
• D) 3.

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Definitions:

Pokemon Cards

Collectible cards based on the Pokémon franchise, used for playing the Pokémon Trading Card Game.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced with a fixed amount of resources.

Capacity

The maximum output level that a firm, industry, or economy can sustain under the current conditions.

Efficiently

The ability to achieve a desired result without wasting materials, time, or energy.