Economy, asked by malheirojruhaka, 8 months ago

Analyse how the national income will change through the multiplier process if there were a huge increase in government spending.

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Answered by rosey25

12

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The multiplier effect refers to the theory that government spending intended to stimulate the economy causes increases in private spending that additionally stimulate the economy. In essence, the theory is that government spending gives households additional income, which leads to increased consumer spending

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