Re: Multiplier question..

Posted by Spiti on Apr 27, 2014; 6:02pm
URL: http://discussion-forum.276.s1.nabble.com/Multiplier-question-tp7587900p7587906.html

I thought when govt increases taxes, disposable income decreases which should reduce consumption and consequently Y.
But in the question I'm confused if when govt raises taxes, does it accordingly raise G to keep G=tY? In that case Y would increases.