In a closed economy, households pay $0.40 in tax on every $1 increase in their gross income, and spend ${\raise0.5ex\hbox{$\scriptstyle 5$}
\kern-0.1em/\kern-0.15em
\lower0.25ex\hbox{$\scriptstyle 6$}}$ of every increase in their disposable income.
What is the value of the multiplier?
2
2 )
${\raise0.5ex\hbox{$\scriptstyle 1$}
\kern-0.1em/\kern-0.15em
\lower0.25ex\hbox{$\scriptstyle 2$}}$
3 )
3
4 )
6
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