In the Keynesian model, the relationship between the multiplier and the change in government spending is as follows:
In the Keynesian model, the relationship between the multiplier and the change in government spending is as follows:
change in government spending = multiplier change in total spending in the economy
multiplier change in government spending change in total spending in the economy
change in government spending + change in total spending in the economy multiplier
change in government spending/multiplier - change in total spending in the economy
Homework Answers
According to Keynesian relationship between multiplier and change is govt spending = change in govt spending/ multiplier
Correct answer is D
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In the Keynesian model, the relationship between the multiplier and the change in government spending is as follows:
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