Question

planned investment remains unchanged as the interest rate changes, the size of the government spending multiplier will be

Answer 1

Answer: Multiplier effect= Change in real GDP ÷ Change in injection

Explanation:

When there is an extra spending by firms on especially workers welfare, it rubs off on the society because this workers would now spend more down to the markets and it affects traders out their and affects the GDP.

Multiplier effect= Change in real GDP ÷ Change in injection