Problem
JJC Discuss the relative importance of the multiplier, the price elasticities of demand for imports and exports, and (4) interest elasticity in determining the effectiveness of macroeconomic policies in Singapore and the USA.
(a) Explain how a global recession would affect the circular flow of income in a country.
(b) Explain how changes in investment expenditure results in a larger change in national income.
(c) Discuss the view that a large increase in national income is often but not always desirable.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.