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2.4 (Investment and the Multiplier)

2.4 (Investment and the Multiplier) This chapter assumes that investment is autonomous. What would happen to the size of the
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2. asked by Larry
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If a $1,000 increase in income leads to an $800 increase in consumption expenditures, then the marginal propensity to consume is
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2. asked by unknown 2.0
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if a multiplier is by a dozen, and the multiplier stacks, and there is a total of 8 multipliers each having a 12x multiplier, do
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If investment is dependent on income in addition to interest rate (assuming C and G have usual forms) then the Keynesian
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2. asked by Salman
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When an increase in government purchases raises incomes, shifts money demand to the right, raises the interest rate, and lowers
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2. asked by unknown 2.0
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If the multiplier is 4, a $10 billion increase in autonomous investment will cause a
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2. asked by donald
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Why is the real investment multiplier smaller for local communities then for the nation?
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2. asked by Emily
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Explain the difference between the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to
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2. asked by looj
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if investment increases by $100 and, as a result, GDP ultimately increases by $200, the multiplier equals?
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2. asked by Leonard
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Why is the tax multiplier smaller than the government spending multiplier?
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2. asked by Emily
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