Question: Same as question 2, but for the widows cruse: consider the effects of an increase in the animal spirits of business firms that increases the
Same as question 2, but for the ‘widow’s cruse’: consider the effects of an increase in the animal spirits of business firms that increases the intercept g0 in the investment function (4.19). What is the key difference in the adjustment mechanism for the widow’s cruse (and also for the paradox of thrift) in the neo-Kaleckian model as compared with the neo-Robinsonian one?
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