"The presence of confidence has a further implication for multipliers. Other multipliers are also highly dependent on the level of confidence. An illustration from the current economy (as of November 2008) indicates why. Low confidence has caused credit markets to freeze up. Lenders do not trust that they will be paid back. Under the circumstances those who want to spend find it difficult to obtain the credit they need; those who supply the goods find it difficult to obtain the working capital they need. As a result the usual fiscal multipliers, from increased government expenditures or from decreased taxes, will be smaller—probably much smaller."
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Chap. 1 : Confidence and Its Multipliers
https://en.wikiquote.org/wiki/Animal_Spirits%3A_How_Human_Psychology_Drives_the_Economy%2C_and_Why_It_Matters_for_Global_Capitalism
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Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism
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