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    Economics A Contemporary Introduction
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    Exam 24: The Algebra of Demand-Side Equilibrium
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    The Simple Tax Multiplier Is
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The Simple Tax Multiplier Is

Question 11

Question 11

Multiple Choice

The simple tax multiplier is


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

Correct Answer:

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