James C. W. Ahiakpor
Related Freeman Articles
OCTOBER 03, 2012 by JAMES C. W. AHIAKPOR
SEPTEMBER 21, 2011 by JAMES C. W. AHIAKPOR
NOVEMBER 24, 2010 by JAMES C. W. AHIAKPOR
JUNE 09, 2009 by JAMES C. W. AHIAKPOR
The multiplier argument is founded on two key assumptions that turn out to be false. First is the notion that savings are not spent but rather are withdrawn from the expenditure stream. The multiplier's second incorrect premise is that government expenditures are "autonomous"; that is, government spending does not depend on current income.