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Asked by Emily

Why is the real investment multiplier smaller for local communities then for the nation?
16 years ago

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Answered by economyst
Think about how the multiplier works; how in increase in spending causes increases in someone's income which, in turn, increases their spending. If someone buys a good or service outside of their own community, then somebody outside of the community has an increase in income. However, the spending is still, likely, inside the nation.
16 years ago

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