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How Do the Values of the Tax Multiplier and the Government

Question 21

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How do the values of the tax multiplier and the government spending multiplier change as the MPC increases? Explain why the multipliers change. If the MPC were 0, what would the government spending and tax multipliers equal? If the MPC were 1, what would the government spending and tax multipliers equal?

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As the MPC increases, the value of the g...

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