Government infrastructure spending has a large multiplier. Expenditure on construction projects goes directly back into the economy

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Government infrastructure spending has a large multiplier. Expenditure on construction projects goes directly back into the economy through wages. And improved infrastructure boosts productivity and economic growth.

Explain what determines the size of the multiplier effect of infrastructure spending.

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Foundations Of Economics

ISBN: 9780134486819

8th Edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Dec 23, 2023 06:04 AM

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Government infrastructure spending has a large multiplier. Expenditure on construction projects goes directly back into the economy

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Expenditure on infrastructure projects of 1 billio...View the full answer

Foundations Of Economics

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