A8. An increase in the marginal rate of tax, with other things equal, should lead to a) a decrease in the size of the Keynesian multiplier b) an increase in the size of the Keynesian multiplier c) no change in the size of the Keynesian multiplier d) an indeterminate effect on the size of the Keynesian multiplier

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A: Marginal propensity to consume is change in consumption with respect to change in income.

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A: Equilibrium in the Keynesian AS/AD framework at the intersection of AD and AS curves.

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