what is an investment multiplier? explain its working
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The investment multiplier refers to the stimulative effects of public or private investments. It is rooted in the economic theories of John Maynard Keynes. The extent of the investment multiplier depends on two factors: the marginal propensity to consume (MPC) and the marginal propensity to save (MPS
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The investment multiplier refers to the stimulative effects of public or private investments. It is rooted in the economic theories of John Maynard Keynes. The extent of the investment multiplier depends on two factors: the marginal propensity to consume (MPC) and the marginal propensity to save (MPS)
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