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3 . There is a tax - cut that increases your Disposable Income by $ 3 , 4 0 0 , which you intend to

3. There is a tax-cut that increases your Disposable Income by $3,400, which you intend to save $510.
a. Calculate the MPC.
b. Interpret this MPC.(What does it mean? Define MPC and describe in this context.)
c. What is the resulting fiscal multiplier?
d. Interpret the multiplier and describe the multiplier effect.
e. Find the total change to the economy from this tax change.

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