Thursday, November 20, 2008

Unit 2: Negative multiplier effects from the decline of the Detroit motor industry

This BBC article has some examples of the negative multiplier in action

http://news.bbc.co.uk/1/hi/business/7737040.stm

a) Explain what is meant by the negative multiplier effect
b) Explain how the decline of the major motor manufacturers has lead to a negative multiplier effect in the city

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