This chapter gave the equation for the multiplier as 11>11 - MPC22. Several important variables were held
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This chapter gave the equation for the multiplier as 11>11 - MPC22. Several important variables were held constant in arriving at this equation. Explain whether the value for the multiplier will increase or decrease as a result of the following happening as aggregate expenditure increases:
a. The interest rate increases
b. The price level increases
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