Suppose that both the marginal propensity to import decreases and the marginal tax rate increases. Explain why

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Suppose that both the marginal propensity to import decreases and the marginal tax rate increases. Explain why the effect on the multiplier is ambiguous.

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Foundations of Macroeconomics

ISBN: 978-0132831000

6th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Mar 04, 2016 07:43 AM

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Suppose that both the marginal propensity to import decreases and the marginal tax rate increases. Explain why

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The reason that the impact on the size of the multiplier is ambiguou...View the full answer

Foundations of Macroeconomics

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