Question: In the above examples, I set the marginal propensity to invest at 0 and the marginal propensity to import at 0. If the marginal propensity
In the above examples, I set the marginal propensity to invest at 0 and the marginal propensity to import at 0.
If the marginal propensity to invest were positive (greater than zero and less than one), would the multipliers above be larger or smaller? Why?
If the marginal propensity to import were positive (greater than zero and less than one), would the the multipliers above be larger or smaller? Why?
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