Unformatted text preview: of the propensity to save is always desirable. Propensity to save varies in its values (between 1 to 0). Hence closer the value of 'b' to 1, more will it be favorable to promote employment. But if the 'b' value is closer to zero it would be highly unfavorable in generating employment. Contrarily, the value of S/Y closer to zero is favorable, while S/Y closer to 1 will be unfavorable in promoting employment opportunities . With this in mind let’s proceed with multiplier derivation....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10