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lesantik [10]
4 years ago
7

The multiplier will increase if the marginal propensity to consume? ______ or the marginal tax rate? ______.

Business
1 answer:
Sunny_sXe [5.5K]4 years ago
6 0
<span>The multiplier will increase if the marginal propensity to consume DECREASES or the marginal tax rate DECREASES. 

Multiplier = 1 / 1-MPC
MPC or marginal propensity to consumer = change in consumption / change in income

Taxes and imports are identified as leakages. Leakages are money spent by an individual but not on domestic goods or services. Leakages reduces the size of the multiplier. Thus, the lesser the amount of leakages, the bigger the multiplier. 

</span>
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3 years ago
Read 2 more answers
6x²+x-28<br><br><br>solve this everyone​
barxatty [35]

Answer:

x = 2.0785  and  x = -2.245

Explanation:

The following is the step by step solution to the problem.

6x² + x - 28 = 0

Where,

a = 6

b = 1

c = -28

Using the formula,

x = [(-b + √((b)² - 4ac)) /  2a] and x =  [(-b - √((b)² - 4ac)) /  2a]

x = [(-1 + √((1)² - 4(6)(-28))) /  2(6)] and x =  [(-1 - √((1)² - 4(6)(-28))) /  2(6)]

x = [(-1 + 25.94) / 12   and   x = [(-1 - 25.94) / 12

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8 0
3 years ago
An economy has the following money demand function: (M/P)d = (1/3)Y/i. Suppose the announcement of a new head of the central ban
DerKrebs [107]

Answer:

r - 2%

Explanation:

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that is,

Nominal Interest rate = real interest rate + expected inflation rate

let the real interest rate be r

since inflation is reduced, expected inflation rate is in the negative that is - 2%

therefore,

Nominal Interest rate = r + (- 2%)

                                   = r - 2%

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4 years ago
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mr_godi [17]
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3 years ago
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Rudik [331]

Answer:

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Explanation:

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