1.5.1 Explain the multiplier intuitively. Why is it that an increase in planned investment of $100 raises...

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1.5.1 Explain the multiplier intuitively. Why is it that an increase in planned investment of $100 raises equilibrium output by more than $100? Why is the effect on equilibrium output finite? How do we know that the multiplier is 1/MPS?

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Principles Of Economics

ISBN: 9780802845610

12 Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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Question Posted: Nov 12, 2024 05:00 AM

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1.5.1 Explain the multiplier intuitively. Why is it that an increase in planned investment of $100 raises...

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Principles Of Economics

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