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X Take Test: Quiz 3-2019 Su... ek 5- Q... uestion Completion Status: Using the numbers from the previous question, find the t
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Answer #1

MPC = 0.9

Tax multiplier = - MPC/(1 - MPC) = - 0.9/0.1 = -9

(Negative sign indicates the opposite impact of tax increase/decrease on Y)

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