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Business, 17.12.2021 03:50 Arneis

In order to simplify the equation for the multiplier to its familiar, relatively simple form, we make use of the a. fact that the multiplier effect is represented by an infinite geometric series. b. empirical evidence that points to a value of about for the MPC. c. assumption that increases in government purchases have no effect on consumer spending. d. assumption that the feedback effects associated with changes in government purchases become negligible after two or three rounds of spending have occurred.

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In order to simplify the equation for the multiplier to its familiar, relatively simple form, we mak...
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