Question:
The maximum value of Fiscal policy multiplier is________.
(b implies sensitivity of planned investment spending to interest rate, c implies marginal property to consume, t is marginal tax rate, k refers to sensitivity of money demand to interest rate)
The maximum value of Fiscal policy multiplier is________.
(b implies sensitivity of planned investment spending to interest rate, c implies marginal property to consume, t is marginal tax rate, k refers to sensitivity of money demand to interest rate)
(b implies sensitivity of planned investment spending to interest rate, c implies marginal property to consume, t is marginal tax rate, k refers to sensitivity of money demand to interest rate)
Updated On: Jun 19, 2024
- \(\frac{1}{k}\)
- \(\frac{1}{1-c(1-t)}\)
- \(\frac{1}{b}\)
- \(\frac{b}{1-c(1-t)}\)
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Verified By Collegedunia
The Correct Option is B
Solution and Explanation
The correct option is(B): \(\frac{1}{1-c(1-t)}\)
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