Question: By definition, the multiplier effect tends to make aggregate demand shift right farther than the amount government expenditures increase. Suppose that there is a multiplier
By definition, the multiplier effect tends to make aggregate demand shift right farther than the amount government expenditures increase. Suppose that there is a multiplier effect that is greater than one and that there are no crowding out or investment accelerator effects. Which of the following would NOT shift aggregate demand right by more than the increase in expenditures?
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