The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annu
1 answer:
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Answer:
less than the government spending multiplier
Explanation:
Given :
Percentage spends by a households for the increase in the income = 75%
So the mpc = 0.75
Potential output = 600 billion arcs
The government multiplier is =
= 4
The tax multiplier is =
= 3
Thus we see that the tax multiplier is less than the government spending multiplier.