Mhe marginal propensity to consume is 0.8, the marginal tax rate is 0.2, and the marginal propensity to import is 0.14. The price level is fixed. The autonomous tax multiplier is If the autonomous tax by the equilibrium real GDP by O A. decreases; 20, increases: 32 O B. increases, 12, increases; 30 Oc. decreases; 20, increases; 60 O D. increases, 12; decreases, 30 O E. decreases; 30; decreases; 48
Mhe marginal propensity to consume is 0.8, the marginal tax rate is 0.2, and the marginal propensity to import is 0.14. The price level is fixed. The autonomous tax multiplier is If the autonomous tax by the equilibrium real GDP by O A. decreases; 20, increases: 32 O B. increases, 12, increases; 30 Oc. decreases; 20, increases; 60 O D. increases, 12; decreases, 30 O E. decreases; 30; decreases; 48
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 2.9P
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