Why is the effect on equilibrium output finite

Reference no: EM131070922

How can I explain the multiplier? and why is it that an increase in planned investment of $100 raises equilibrium output by more than $100/ why is the effect on equilibrium output finite? and How do I know that the multiplier is 1/MPS?

Reference no: EM131070922

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Why is the effect on equilibrium output finite : why is the effect on equilibrium output finite? and How do I know that the multiplier is 1/MPS?

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