Smaller multiplier means that the change in government
smaller multiplier means that the change in government purchases of goods and services or taxes necessary to close an inflationary or recessionary gap is larger. Explain this apparent inconsistency?
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smaller multiplier means that the change in government purchases of goods and services or taxes necessary to close an inflationary or recessionary gap is larger. Explain this apparent inconsistency
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After World War 1 Germany experienced one ofthe history's most speculator example of hyperinflation. TheGerman government did not pay for the war by taxing people moreheavily. Things got worse at the end of the war.
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