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The procedure goes on, even when while the economic agents invest merely part of their money, the brand new number get smaller inside for each and every round. In the event the soil settles the degree of the new income generated try several times the initial boost in using–and this, title the newest using multiplier. The new desk lower than gets a typical example of just how this might performs having a rise in government spending. Remember that the brand new multiplier work exactly the same way backwards having a reduction in using.
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