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    Economics Principles and Policy Study Set 2
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    Exam 27: Managing Aggregate Demand: Fiscal Policy
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    Why Does the Numerical Value of the Multiplier Fall When
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Why Does the Numerical Value of the Multiplier Fall When

Question 34

Question 34

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Why does the numerical value of the multiplier fall when an income tax is added to the income-expenditure model?

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An income tax causes a portion of any in...

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