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hello, I need help with this question. Suppose the government raises its revenue by a net tax of 40 percent on income, t = 0.4.
hello,
I need help with this question.
Suppose the government raises its revenue by a net tax of 40 percent on income, t = 0.4. The marginal propensity to consume out of disposable income is 0.9 and the marginal propensity to import is 0.2.
Note:Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places.
a)What is the slope of the AE function? What is the size of the multiplier?
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