Explain the economic impact of an increase in the multiplier.
What will be an ideal response?
The multiplier magnifies the fluctuations in economic activity initiated by changes in investment spending, net exports, government spending, or consumption spending. The larger the multiplier the greater will be the impact of any changes in spending on real GDP.
Economics
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Regulation that specifies that a firm's profits must be shared with its customers if the profit rises above a target level is called
A) rate of return regulation. B) minimum price regulation. C) earnings sharing regulation. D) average cost pricing.
Economics
In the U.S., the Revolutionary War (1775-1781) was immediately followed by an increase in:
a. trade. b. inflation. c. real per capita income. d. slave imports.
Economics