Q4.Hi can you please help me awnser the attached question? 4.What is the 'Keynesian Fiscal Multiplier' andwhat things might decrease its magnitude?Hints: Give both the definition of and formula for theMultiplier. Give an intuitive explanation of why there is amultiplier. Go though the elements of the Marginalpropensity to withdraw. Explain when MPC might be lowbecause of expectations.

The initial rise in expenditure leads to multiple rise in the income level, such phenomenon is known…

hat is the 'Keynesian Fiscal Multiplier’ and things might decrease its magnitude? ve both the definition of and formula for the : Give an intuitive explanation of why there is a Go though the elements of the Marginal

hat is the 'Keynesian Fiscal Multiplier’ and things might decrease its magnitude? ve both the definition of and formula for the : Give an intuitive explanation of why there is a Go though the elements of the Marginal

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 2.9P

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Q4. Hi can you please help me awnser the attached question?

4.
What is the 'Keynesian Fiscal Multiplier' and
what things might decrease its magnitude?
Hints: Give both the definition of and formula for the
Multiplier. Give an intuitive explanation of why there is a
multiplier. Go though the elements of the Marginal
propensity to withdraw. Explain when MPC might be low
because of expectations.

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