SeeGeeWhy--that's interesting stuff. I guess I'm a little dubious that the multiplier for government spending is zero--quite honestly, that doesn't make a whole lot of sense if the multiplier for a consumer dollar is three. Not to mention being a little inconsistent with the historical record, which shows (WWII being a great example) that increases in government spending can have vast impact on the larger economy far beyond the value of the original dollar spent.
I suspect that as is usually the case, the truth is complicated--that not every consumer dollar spent is equal, and not every government dollar spent is equal. I highly doubt there is an absolute multiplier that is consistent across circumstances in either case--I would guess that the multiplier in both cases goes up or down depending on other variables in the economy.
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