Explain the basic logic behind the multiplier in words why
1. Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
2. (More difficult) What would happen to the multiplier analysis if b = 0? If b = 1?
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Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
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