How can Government budget be helpful in altering distribution of income in an economy? Explain.
CBSE DELHI - SET 1 2010
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Through the budget government can reduce inequalities of income. It can adopt progressive taxation policy and spend more on requirements of the poor.
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Define multiplier. What is the relation between marginal propensity to consume and multiplier? Calculate the marginal propensity to consume if the value of multiplier is 4.