Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) General Knowledge Economy

In a situation where the marginal propensity to consume (MPC) is 0.8, and the marginal tax rate (t) is 0.2, the balanced budget multiplier can be calculated as:

1
1
2
 2
3
 1/(1-MPC(1-t))
4
 (1-MPC) / (1-MPC(1-t))
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