Explain why a higher marginal tax rate reduces the size of the government expenditure multiplier.

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Macroeconomics Canada In The Global Environment

ISBN: 9780321931207

9th Edition

Authors: Michael Parkin, Robin Bade

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Question Posted: Jan 09, 2023 04:07 AM

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Explain why a higher marginal tax rate reduces the size of the government expenditure multiplier.

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The multiplier occurs because the initial increase in government expenditure incr...View the full answer

Macroeconomics Canada In The Global Environment

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