Circular flow of income and the multiplier effect
The presentation includes an explanation and diagram of the circular flow of income and includes an explanation of injections and leakages. The presentation then describes the significance of the multiplier effect based on our average and marginal propensities to consume and save. There are calculation exercises for the propensities and the size of the multiplier.
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  • Circular-Flow-of-Income---Multiplier-Effect.ppt

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Created: Jan 24, 2018


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