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Sagot :
The tax multiplier for this nation with marginal propensity to consume (MPC) of 0.83 is -4.88
What is tax multiplier?
The tax multiplier tells us the final increase in real GDP that will occur as the result of a change in taxes.
In order to calculate the tax multiplier for this nation according to the given data we would have to calculate the following formula:
Tax multiplier for this nation
= MPC / 1 - MPC
= 0.83 / 1 - 0.83
= 0.83 / 0.17
= -4.88
Hence, The tax multiplier for this nation with marginal propensity to consume (MPC) of 0.83 is -4.88
Learn more about tax multiplier here : https://brainly.com/question/16965373
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