The total multiplier for the economy will reflect ?
Correct answer: D. MPC, MPT and MPZ
- A. MPC and MPT
- B. MPT and MPZ
- C. MPC and MPZ
- D. MPC, MPT and MPZ
Explanation
In an economy with taxation and imports, the total multiplier reflects leakages through saving, taxes and imports alongside consumption, represented here by MPC, MPT and MPZ.
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