Fiscal policy involving cutting taxes

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Fiscal policy involving cutting taxes and/or raising transfers for low-income households will have a multiplier effect on total spending that is: (a) greater than an equal dollar change in taxes or transfers for high income households. (b) less than an equal dollar change in taxes or transfers for high income households. (c) the same as an equal dollar change in taxes or transfers for high income households. (d) zero, only changes in government purchases have a multiplier effect.

Reference no: EM131112287

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