Not one. Not two. Not 1.6. 1.57

by Russ Roberts on January 14, 2009

in Stimulus

Arnold asks the right question.

If the multiplier is really 1.57, why are we settling for a only a trillion dollar increase in government spending?

Is it possible that the relationship between government spending and prosperity is not linear?

I like it that they carry it out to two decimal places.

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