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Problem regarding the proportional income tax rate

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Reference no: EM131199750

Given a consumption function C = 1 000 + 0,4Y with a proportional income tax rate of 40%, what is the multiplier? Round off your answer to two digits after the decimal.

[1] 1,32

[2] 1,70 t

[3] 2,50 ?

[4] 2,78

Reference no: EM131199750

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