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Write the “Leverage Effect” and Equation Explanation?

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Write the “Leverage Effect” and Equation Explanation?

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Leverage Effect: The combined effect of the multiplier and the accelerator is also called the leverage effect which may lead the economy to very high or low level of income propagation.

Symbolically

Y = C + IA + IP

Y = Aggregate income

C = Consumption expenditure

T = autonomous investment; I = induced private investment

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