Keynesian expenditures model and the multiplier

Reference no: EM13685941

Presume that the Japanese economy is in equilibrium according to the Keynesian expenditure model. Now presume that the Tokyo Stock Exchange (as gauged by the Nikkei 225 index) experiences a 22 percent increase in value in the next three months. Describe the impact of this event on the Japanese economy using the Keynesian expenditures model and the multiplier. Is there more than one correct answer?

Reference no: EM13685941

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