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Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula: MPC 1. (MPC 1)
Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
MPC 1.
(MPC 1) / MPC.
1 / MPC.
1 [1 / (1 MPC)].
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Microeconomics
Authors: Roger A. Arnold
12th Edition
1285738306, 978-1285738307
