If the MPS is 0.1 and the income tax rate is 0.33, and the fraction of income spent on imports is ...

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If the MPS is 0.1 and the income tax rate is 0.33, and the fraction of income spent on imports is ...

If the MPS is 0.1 and the income tax rate is 0.33, and the fraction of income spent on imports is 0.25, then the multiplier is
A) 2.5.
B) 1.47.
C) 1.51.
D) 1.55.

Textbook

Macroeconomics

Edition: 12^th

Author: Gordon

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bedau Author

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5 years ago

thanks !

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