The process continues on, even though since the monetary representatives invest only section of its income, the fresh number come down within the per round. If the dust settles the level of the new money generated is multiple times the first boost in spending–and this, the name the fresh spending multiplier. The new desk less than gets a typical example of exactly how this could performs that have a rise in bodies paying. Note that the brand new multiplier performs exactly the same way in reverse with a reduction in paying.

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