In introductory macroeconomic class, students learn the theory of the multiplier and many interesting counterintuitive notions such as the paradox of thrift and the balanced budget multiplier based on the multiplier process. Essentially, the multiplier multiplies because one person’s expenditure is another person’s income, of which they spend a fraction, which in turn becomes another […]
Worth reading. How Remittances are affecting the economy and upbringing of households in Bangladesh.
This page was last updated on September 29, 2014.