Question

what is tax multipler?​

Answer 1

Answer:

The tax multiplier measures how gross domestic product (GDP) is impacted by changes in taxation. ... The tax multiplier is negative in value because as taxes decrease, demand for goods and services increases. The multiplier examines the marginal propensity to consume (MPC), or ratio of income spent and not saved.

Answer 2

Answer:

The tax multiplier measures how gross domestic product (GDP) is impacted by changes in taxation. ... The tax multiplier is negative in value because as taxes decrease, demand for goods and services increases. The multiplier examines the marginal propensity to consume (MPC), or ratio of income spent and not saved.