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The Investment Multiplier: a Different Pedagogical Approach

机译:投资乘数:一种不同的教学方法

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This paper presents an alternative method of presenting the investment multiplier by employing the concept of the production possibility curve. A standard presentation to explain the investment multiplier to beginning economics students is to use the C + I diagram, or what is sometimes called the "forty-five degree line" diagram. Given a positively sloped consumption function and a fixed investment value, one identifies equilibrium income, then the C + I line shifts up (due to an exogenous change in investment), and the new equilibrium income is located. If one divides the change in equilibrium income by the change in investment, the result is the multiplier. As long as the slope of the consumption function, or the marginal propensity to consume, is positive and less than one the value of the multiplier is greater than one. This is simply because the change in income is made up of the change in investment plus the change in consumption.
机译:本文提出了一种利用生产可能性曲线的概念来表示投资乘数的替代方法。向C经济学的初学者解释投资乘数的标准方法是使用C + I图,有时也称为“四十五度线”图。给定一个正斜率的消费函数和一个固定的投资值,可以确定均衡收入,然后C + I线向上移动(由于投资的外生变化),然后找到新的均衡收入。如果将均衡收入的变化除以投资的变化,结果就是乘数。只要消费函数的斜率或消费的边际倾向为正且小于1,乘数的值就大于1。这仅仅是因为收入的变化是由投资的变化加上消费的变化组成的。

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