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Why Might the Response of Far-Sighted Consumers Reduce the Multiplier

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Why might the response of far-sighted consumers reduce the multiplier effect of an increase in government expenditures?


Definitions:

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Speech

The expression of thoughts and feelings through spoken language.

Social Class

A division of a society based on social and economic status, which influences individuals’ opportunities, lifestyles, attitudes, and behavior.

Paul Fussell

An American cultural and literary historian known for his writings on class, war, and social issues in America.

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