If Taxes Depend on Income and the MPC Is 0

question 2

Multiple Choice

If taxes depend on income and the MPC is 0.8 and t is 0.4, the tax multiplier is

• A) -1.54.
• B) -1.92.
• C) -2.5.
• D) -2.7.

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Definitions:

Void

In programming, void indicates that a function does not return a value.

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In computing, a reference that points to another document or a specific part of a document, commonly used on the web.

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A file containing C or C++ declarations and macro definitions to be shared between several source files or to make them available to a large code base.

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A preprocessor directive in C/C++ used to include the contents of a file or library in a program before compilation.