Question: What factors could explain why some countries have a higher
What factors could explain why some countries have a higher multiplier than others?
Answer to relevant QuestionsHow can the interaction of the multiplier and the accelerator explain cyclical fluctuations in national income?Why do banks hold a range of assets of varying degrees of liquidity and profitability?Why may an expansion of the money supply have a relatively small effect on national income? Why may any effect be hard to predict?Under what circumstances would a rightward shift in the ADI curve lead to a permanent increase in real national income?It is easier to control the monetary base than broader money, but it is less relevant to do so.’ Do you agree with this statement?
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