Assume that the marginal propensity to expend is 050 and


Assume that the marginal propensity to expend is 0.50 and therefore the multiplier is 2. According to the multiplier model, an increase in autonomous exports of 100 would raise the equilibrium level of income by 200. Explain how the multiplier process amplifies the initial shift in autonomous expenditures.

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Business Management: Assume that the marginal propensity to expend is 050 and
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