(a)Suppose during 2020due to relief in Taxation Marginal Propensity to Consume (MPC) will increase from 0.65 to 0.75then calculate Tax multiplier (KT). (b)By using the Tax multiplier value calculated in

My account
Edit my Profile
Private messages
My favorites

Ask a Question
Questions
Unanswered
Tags
Categories
Ask a Question

asked Sep 2, 2021 225k views

4 votes

(a)Suppose during 2020due to relief in Taxation Marginal Propensity to Consume (MPC) will increase from 0.65 to 0.75then calculate Tax multiplier (KT). (b)By using the Tax multiplier value calculated in part (a), find the change in national income if Tax amount is increased from 4500billion rupees to 5100billion rupees. (c)How Subsidies and Ehsas program amount will affect the Aggregate Demand (AD)?