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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    If the Marginal Propensity to Consume Is 0
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If the Marginal Propensity to Consume Is 0

Question 90

Question 90

Multiple Choice

If the marginal propensity to consume is 0.1, then the tax multiplier is:


A) exactly 0.1.
B) more than 10.
C) less than 10.
D) exactly 10.

Correct Answer:

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