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How might an accurate value for the multiplier aid a government in setting fiscal policy?
Any given multiplier will enhance national income at a given rate times enhance in government spending. Knowing that, for instance, the value of k is 2, and that 10,000 jobs are expected to be created for every additional billion in national income, then additional government spending of 0.5billion will make the necessary jobs.
Theories and Models ?? Microeconomic Analysis – Theories are taken in use to describe the observed phenomena in terms of a set of essential rules and
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Suppose scientists discover that eating soybeans prevents cancer and heart disease
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