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2 years ago

a. Suppose the marginal propensity to consume (MPC) for a nation is 0.67. What is the tax multiplier for this nation

1 answer:

7 0

Assuming the marginal propensity to consume (MPC) for a nation is 0.67. The tax multiplier for this nation is: 2.03.

<h3>Tax multiplier</h3>

Using this formula

Tax multiplier=-MPC/1-MPC

Where:

Marginal propensity to consume (MPC)=0.67

Let plug in the formula

Tax multiplier=0.67/1-0.67

Tax multiplier=0.67/0.33

Tax muitiplier=2.03

Inconclusion the tax multiplier for this nation is: 2.03.

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3 years ago

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1 year ago

Our company can produce a product that incurs the following costs per unit: direct materials, $10; direct labor, $24, and overhe

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Answer:

net incremental cost = $ 2.2

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Data provided:

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3 years ago