Tax multiplier – Derivation, Formula, and Graphical Representation

Tax multiplier - Derivation, Formula, & Graphical Representation

Tax Multiplier emphasizes the change in the income or GDP level due to the change in taxation levied by the government. The concept covered will be marginal propensity to consume, marginal propensity to save, tax multiplier formula, derivation, examples, graphical representation, government spending multiplier, uses and limitations for the same.