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More cards in this set
Card 6
Front
Why is the final change in income greater than the initial injection into the economy?
Back
Card 7
Front
What is the size of the multiplier limited by?
Back
Card 8
Front
How can the multiplier work in reverse?
Back
Card 9
Front
What is the formula for calculating the size of the multiplier?
Back
Card 10
Front
What will be the 2 impacts of an increase in injections such as gvnmt. spending or investment?
Back
Card 11
Front
What is the 'Marginal Propensity to Consume' (MPC)?
Back
Card 12
Front
What is the effect of a higher MPC?
Back
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