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In reality, households will not simply split an increase in income between saving and consumption of domestic output. A fraction of the additional income will
In reality, households will not simply split an increase in income between saving and consumption of domestic output. A fraction of the additional income will go toward the payment of taxes, and a fraction will go to purchases of foreign goods imports Accounting for the effects of taxes and imports willincrease the multiplier effect you found earlier.
In reality, households will not simply split an increase in income between saving and consumption of domestic output. A fraction of the additional income will go toward the payment of taxes, and a fraction will go to purchases of foreign goods imports Accounting for the effects of taxes and imports willincrease the multiplier effect you found earlier.
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