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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 lets proceed with multiplier derivation....
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- Fall '10