Assuming the marginal propensity to consume (MPC) for a nation is 0.67. The tax multiplier for this nation is: 2.03.
Tax multiplier
Using this formula
Tax multiplier=-MPC/1-MPC
Where:
Marginal propensity to consume (MPC)=0.67
Let plug in the formula
Tax multiplier=0.67/1-0.67
Tax multiplier=0.67/0.33
Tax muitiplier=2.03
Inconclusion the tax multiplier for this nation is: 2.03.
Learn more about tax multiplier here:https://brainly.com/question/16965373
