Re: isi

Posted by aditi5000 on May 10, 2012; 5:42pm
URL: http://discussion-forum.276.s1.nabble.com/isi-tp7542957p7547646.html

Yes, multiplier will be 1/1- MPC +MPM
or 1/1-mpc +mpm +tax rate*MPC in case there is taxation in the model

So there will be a multiplier effect only of there is a level of induced M (not just autonomous)