Answered: What would happen to multiplier if…

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Economics

What would happen to multiplier if investment were to be positively related to income?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.6P

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Question

1. What would happen to multiplier if investment were to be positively related to income?

2. is it possible for total saving to fall when people beome more thirfty?

3. What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?

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