What happens to Keynesian Multiplier in an Open Economy?
Get the answer of: What happens to Keynesian Multiplier in an Open Economy? In Keynes' model equilibrium output can be calculated as follows: Since C – a + bY and AE – C + I = a + bY + l, and since in equilibrium, aggregate expenditure equals income, AE = Y, we have Y0 = a + bY + [...]