Economy, asked by ramatlapanat, 5 months ago

what is a tax multiplier, why it is negative

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Answered by bulisaikia08
1

Answer:

The government spending multiplier is always positive. In contrast, the tax multiplier is always negative. This is because there is an inverse relationship between taxes and aggregate demand. When taxes decrease, aggregate demand increases.

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Answered by shyamlal10468
4

Answer:

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