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If the MPC is point 5 the tax multiplier would be what?

Since MPC+MPS=1 Then MPS=1-0.5=0.5 Tax Multiplier= -(MPC/MPS)=-0.5/0.5= -1


What is the multiplier if MPC is 0.25?

1.33The answer is 1.33


What is the tax multiplier if MPC 0.75?

3


How can one determine the tax multiplier for a given economic scenario?

To determine the tax multiplier for a given economic scenario, you can use the formula: Tax Multiplier -MPC / (1 - MPC), where MPC is the marginal propensity to consume. The MPC represents the portion of additional income that individuals spend on goods and services. By calculating the MPC and plugging it into the formula, you can find the tax multiplier, which shows how changes in taxes affect overall economic activity.


How can you derive the tax rate multiplier?

Taxation Multiplier = - (MPC) / (1 - MPS) Where, MPC = marginal propensity to consume, and MPS = marginal propensity to save.


If the value of multiplier is 2.49 then find out.what is MPC and MPS?

MPS =0.401 mpc = 0.509


What is an example of a multiplier effect?

K= I/(1-MPC) MPC is a marginal propensity to consume I = investment


How is the multiplier concept computed including MPC?

100


If you know tax multiplier how do you figure government spending multiplier?

you could do it two ways .If you have the MPC could divide it


What is tax multiplier?

The formula for this simple tax multiplier. (m[tax]), is: m[tax] = - MPC x 1 ---- MPS = - MPC ---- MPS Where MPC is the marginal propensity to consume and MPS is the marginal propensity to save. This formula is almost identical to that for the simple expenditures multiplier. The only difference is the inclusion of the negative marginal propensity to consume (- MPC). If, for example, the MPC is 0.75 (and the MPS is 0.25), then an autonomous $1 trillion change in taxes results in an opposite change in aggregate production of $3 trillion.


What is the formula of the multiplier?

1/1-MPC or 1/MPS+MPT+MPM


What are MPC and MPS?

MPC is the Marginal Propensity to Consume. You can find the MPC by taking the change in consumption divided by the change in disposable income. Likewise, MPS is the Marginal Propensity to Save. You can find the MPS by taking the change in savings divided by the change in disposable income. It is useful to know when you want to find out what the multiplier is. Multiplier = 1/MPS or 1/(1-MPC)