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If a $10 billion decrease in lump-sum taxes increases equilibrium RGDP by $40 billion then: A. the multiplier is -4. B. the MPC for this
If a $10 billion decrease in lump-sum taxes increases equilibrium RGDP by $40 billion then:
A. the multiplier is -4. B. the MPC for this economy is .8. C. the MPC for this economy is .6.
D. both A and B are correct.
Could you please tell me how to calculate multiplier, thank you!
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