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Targeting tax cuts to those individuals with a higher MPC Question 8 options: increases the amount of the tax cut that is spent, so that

Targeting tax cuts to those individuals with a higher MPC

Question 8 options:

increases the amount of the tax cut that is spent, so that changes in taxation have a smaller effect on the GDP.

decreases the amount of the tax cut that is spent, so that changes in taxation have a larger effect on the GDP.

decreases the multiplier, so that changes in taxation have a larger effect on the GDP.

decreases the multiplier, so that changes in taxation have a smaller effect on the GDP.

none of the above

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