Re: ISI Sample Paper 2013 ME-II Doubts

Posted by laracroft on Apr 30, 2013; 11:36am
URL: http://discussion-forum.276.s1.nabble.com/ISI-Sample-Paper-2013-ME-II-Doubts-tp7580214p7580240.html

hi

net demand change would have been zero if this would have been classical case, but here in keynsian model... shouldn't there be a positive multiplier effect because the increase in consumption does have a positive effect (as its not ordinary consumption, ultimately its being used for investment purpose only).
Though imports may have a negative effect but overall effect should be positive, i think.....