UGC NET
Ayushi Asked a Question
September 9, 2020 11:22 ampts 30 pts
  • UGC NET
  • Economics

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

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
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  • 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
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