Using your understanding of multipliers, explain why an increase in the tax rate would decrease the size

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Using your understanding of multipliers, explain why an increase in the tax rate would decrease the size of the government purchases multiplier. Similarly, explain why a decrease in the marginal propensity to import would increase the size of the government purchases multiplier.
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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