Question
Let m be the marginal propensity to import, t be the rate of a proportional tax and c the marginal propensity to consume. The effect
Let m be the marginal propensity to import, t be the rate of a proportional tax and c the marginal propensity to consume. The effect on output of an increase in government spending will be the same in a closed economy with a proportional tax system and in an open economy with no taxes whenever . True or false, explain.
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Management A Practical Introduction
Authors: Angelo Kinicki, Denise Breaux Soignet
10th Edition
1260735168, 978-1260735161
