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Answer to Question #332896 in Microeconomics for Unknown
Question #332896
Suppose an endogenous tax variable is introduced in our Keynesian model, what will happen to the size of the multiplier?
a. It will remain the same.
O d. The size of the multiplier and the tax rate are not related.
c. It will decrease.
O b. It will increase.
Expert's answer
c. It will decrease.
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