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    Exam 12: Fiscal Policy
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    What Is the Formula for the Simple Tax Multiplier
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What Is the Formula for the Simple Tax Multiplier

Question 120

Question 120

Multiple Choice

What is the formula for the simple tax multiplier?  


A)  1/MPC 
B)  MPC/(1 - MPC)  
C)  1/(1 - MPC)  
D)  -MPC/(1 - MPC)

Correct Answer:

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