Economists think that the marginal propensity to consume for the Canadian economy is somewhere around 0.9.Based on our simple multiplier formula, this would imply that the multiplier for Canada should be around 10.However, economists agree that the government spending multiplier is less than 2.What might explain this supposed anomaly?

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The Answer of Economists think that the marginal propensity to consume for the Canadian economy is somewhere around 0.9.Based on our simple multiplier formula, this would imply that the multiplier for Canada should be around 10.However, economists agree that the government spending multiplier is less than 2.What might explain this supposed anomaly?

Economists Think That the Marginal Propensity to Consume for the Canadian