What is the multiplier effect?
What will be an ideal response?
The series of induced changes in consumption spending that result from an initial change in autonomous expenditure is called the multiplier effect.
Economics
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Explain the structure of the circular flow model
What will be an ideal response?
Economics
Which of the following purchases is most likely to rise as the result of a temporary tax cut, according to the permanent-income hypothesis?
A) television sets and other consumer durables B) steak dinners and other consumer non-durables C) trips to the Virgin Islands and other vacation destinations D) theater tickets and other entertainment expenditures
Economics