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Explain carefully why the tax multiplier [Y/ T = -b/ (1-b)] is negative and why it issmaller in absolute value than the government expenditure multiplier
Explain carefully why the tax multiplier [Y/ T = -b/ (1-b)] is
negative and why it issmaller in absolute value than the government
expenditure multiplier [Y/ G = 1/ (1- b)].
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Using Econometrics A Practical Guide
Authors: A. H. Studenmund
7th edition
013418274X, 978-0134182742
