If the marginal propensity to consume is zero, a temporary tax increase leads to a small decrease in inflation in the short run but a large decrease in inflation in the long run. Answer True or False. Remember to include your explanation
If the marginal propensity to consume is zero, a temporary tax increase leads to a small decrease in inflation in the short run but a large decrease in inflation in the long run. Answer True or False. Remember to include your explanation
Chapter22: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 13P
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If the marginal propensity to consume is zero, a temporary tax increase leads to a small decrease
in inflation in the short run but a large decrease in inflation in the long run.
Answer True or False. Remember to include your explanation
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