1.33The answer is 1.33
Since MPC+MPS=1 Then MPS=1-0.5=0.5 Tax Multiplier= -(MPC/MPS)=-0.5/0.5= -1
3
100
1/1-MPC or 1/MPS+MPT+MPM
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)
Since MPC+MPS=1 Then MPS=1-0.5=0.5 Tax Multiplier= -(MPC/MPS)=-0.5/0.5= -1
3
3.00
Taxation Multiplier = - (MPC) / (1 - MPS) Where, MPC = marginal propensity to consume, and MPS = marginal propensity to save.
MPS =0.401 mpc = 0.509
K= I/(1-MPC) MPC is a marginal propensity to consume I = investment
100
you could do it two ways .If you have the MPC could divide it
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.
1/1-MPC or 1/MPS+MPT+MPM
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)
1/1-(mpc-mpm) mpc- marginal propensity to consume mpm- marginal propensity to import