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Author Question: In practice, the size of the multiplier is about (Read 38 times)

mckennatimberlake

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Question 1

Suppose that input prices respond very quickly to output price. This will


◦ reduce the value of the multiplier.
◦ increase the value of the multiplier.
◦ have no effect on the value of the multiplier.
◦ either increase or decrease the value of the multiplier depending on the value of the 
MPC.

Question 2

In practice, the size of the multiplier is about


◦ 1.
◦ 1.4.
◦ 2.5.
◦ 3.


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Marked as best answer by mckennatimberlake on Apr 19, 2019

Perkypinki

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mckennatimberlake

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Thank you!



Perkypinki

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Always glad to help...



 

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