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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
  5. Question
    Why Does a $1,000 Tax Cut Generate a Smaller Multiplier
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Why Does a $1,000 Tax Cut Generate a Smaller Multiplier

Question 351

Question 351

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Why does a $1,000 tax cut generate a smaller multiplier effect than a $1,000 increase in government purchases?

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