Explain the basic logic behind the multiplier in words why
1. Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
2. (More difficult) What would happen to the multiplier analysis if b = 0? If b = 1?
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1 in each of these cases how much saving is there in equilibrium hint income not consumed must be saved is saving equal
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1 explain the basic logic behind the multiplier in words why does it require b the marginal propensity to consume to be
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