Ayushi Asked a Question
September 9, 2020 11:22 ampts 30 pts
If marginal propensity to consume is 0.75, What will be the value of Government expenditure multiplier and tax multiplier ? 1. 3 & -4 2. -3 & -4 3. 4 & -3 4. 4 & +3
  • 1 Answer(s)
  • 0 Likes
  • 1 Comments
  • Shares
  • Nidhi taparia Best Answer
    Out of these option 3. is right. Government expenditure multiplier = 4 Tax multiplier = -3 Please refer to the attachment.
    • cropped5986574771714765266.jpg
    Likes(0) Reply(0)
Head Office :
MPA 44, 2nd floor, Rangbari main Road Mahaveer Nagar II, Kota (Raj.) - 324005

Branch Office (Jaipur):
Shyam Tower, Plot No. F2, 6th Floor Amrapali Circle,
Vaishali Nagar, Jaipur, Rajasthan 302021

Mail: info@eduncle.com
All Rights Reserved © Eduncle.com