Suppose imports were a function of disposable income in-stead of income. What would be the new multiplier?

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Suppose imports were a function of disposable income in-stead of income. What would be the new multiplier? How does it compare with the multiplier when imports were a function of income?

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Macroeconomics

ISBN: 978-0077307110

8th edition

Authors: David Colander

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Question Posted: Feb 12, 2016 05:03 AM

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Suppose imports were a function of disposable income in-stead of income. What would be the new multiplier?

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This would make the multiplier 11 c ...View the full answer

Macroeconomics

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