Professor Manish,
Gene Callahan *insert cartoon bears’ raspberry here* offers a response to Rothbard’s reductio ad absurdam of the multiplier here:
http://gene-callahan.blogspot.com/2012/07/rothbards-critique-of-multiplier.html
Of course, his attempt to attribute this to dishonesty on Rothbard’s part is (typically) ridiculous. But it sure seems to me that his basic criticism is valid, and that Rothbard, unfortunately, just made a mistake in this case. Have I missed anything?
Thanks