Q.

Ceteris paribus, an income tax

A. Increases the value of the expenditure multiplier and decreases the value of the net tax revenue multiplier
B. Decreases the value of the expenditure and net tax revenue multiplier
C. Decreases the value of the expenditure multiplier and increases the value of the net tax revenue multiplier
D. None of the above.
Answer» B. Decreases the value of the expenditure and net tax revenue multiplier
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