Introduction: interdependence of federal, state, and local revenues and expenditures, 258. — Definitions, 259. — Assumptions, 261. — Multipliers, 263. — Interpretations, 266. — Applications, 268. — Examples, 270. — Conclusions, 272.

We had divided the demand for money during a period of time according to the method used to satisfy that demand: sale of goods, sale of securities, and keeping money already held. Obviously the first two constituents involve flow-analysis in the usual sense money, goods, and securities must change hands during the period to satisfy the demand for money. Nor is it the intention of the demanders to