If a $102 decrease in investment spending causes income to decline by $102 in the first round of the multiplier process and by $57 in the second round, the multiplier in the economy is ___________________.
If a $102 decrease in investment spending causes income to decline by $102 in the first round of the multiplier process and by $57 in the second round, the multiplier in the economy is ___________________.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 11SQ
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If a $102 decrease in investment spending causes income to decline by $102 in the first round of the multiplier process and by $57 in the second round, the multiplier in the economy is ___________________.
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