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April 18, 2014

Homework Help: Economics

Posted by Salman on Wednesday, March 17, 2010 at 5:45pm.

If investment is dependent on income in addition to interest rate (assuming C and G have usual forms) then the Keynesian multiplier will

A. Not Exist

B. Equal to as compared to the case where investment is not dependent on Y

C. Smaller as compared to the case where investment is not dependent on Y

D. Larger as compared to the case where investment is not dependent on Y

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