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10-04-2024
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The size of the μltiplier varies inversely with changes in the marginal propensity to save. It also increases with the marginal propensity to save and increases as the income tax rate increases. What is the size of the μltiplier?
1) It remains constant
2) It decreases with the marginal propensity to save
3) It increases with the marginal propensity to save
4) It decreases as the income tax rate increases

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