Re: Multiplier question..

Posted by Akshay Jain on Apr 27, 2014; 7:24pm
URL: http://discussion-forum.276.s1.nabble.com/Multiplier-question-tp7587900p7587914.html

Y=a+bY(1-t)+I+ tY......(tY=G)
Y=a+bY-btY+I+tY
Y(1-b+bt-t)=a+I
Y=(a+I)/(1-b+bt-t)
dY/dt=-((a+I)/(1-b+bt-t)^2)*(b-1)
which is positive...so income increases