"If C=a+bY=200+2/3Y and I=I=100, solve Y=C+I=200+2/3Y+100 to get Y*=900. Increase I by 10 and verify that Y* goes up by 30. What is the multiplier? Why? (Note: Y is NNP in billions of $)"
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Formerly a chief economist providing advice to institutional investors, Nathan Lewis now runs a private investing partnership in New York state. Published in the Financial Times, Asian Wall Street Journal, Huffington Post, Daily Yomiuri, The Daily Reckoning, Pravda, Forbes magazine, and by Dow Jones Newswires, he is also the author – with Addison Wiggin – of Gold: The Once and Future Money (John Wiley & Sons, 2007), as well as the essays and thoughts at New World Economics.
See the full archive of Nathan Lewis articles.
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