Re: isi

Posted by Manvendra on May 10, 2012; 5:34pm
URL: http://discussion-forum.276.s1.nabble.com/isi-tp7542957p7547612.html

Hi

Thanks for the reply.

one more related question :

the income identity states that

Y = C + I + G + X - Im

Now, as we know that an increase in Govt. Spending has a multiplier effect on the equilibrium level of income .
So , can we say that an increase in X ( or Im ) will have a multiplier effect on the equilibrium level of income ?