The multiplier effect is an indicator of the efficiency of fiscal policy. If the government approves a tax cut, that extra money goes straight into consumers' pockets. But stimulus policies are usually a response to adverse economic conditions. Consumers may save the extra money or us...
Fiscal Policy under Long-Run Stagnation: A New Interpretation of the Multiplier EffectAggregate DemandConsumption FunctionKeynesian CrossMultiplier EffectPersistent UnemploymentLong-run StagnationDeflationWe develop a Keynesian cross analysis with a dynamic optimization setting that explains long-run stagnation ...
The multiplier effect is one of the chief components of Keynesian countercyclical fiscal policy. A key tenet of Keynesian economic theory is the notion that an injection of government spending eventually leads to added business activity and even more spending which boosts aggregate output and generates...
Financial Encyclopedia multiplier 1a number applied by multiplication to aMULTIPLICANDto produce a figure for damages in cases of future loss, which would produce an appropriate but notional annuity equivalent to the loss but which will itself be exhausted at the time of the notional death. ...
The monetary policy is a vital method used in implementing monetary stability through the management of income and adjustment of the price (monetary targets) in order to promote stability and growth of real output (non-cash goals); the tool of interest rate and direct investment guides or moveme...
1.A Study on Theoretical Multiplier of the Fiscal Policy in China and Its Actual Multiplier Effects;中国财政政策理论乘数和实际乘数效应研究 2.The Multiplicative Effect Between the R&D Expenditureof the Government and Employment;政府R&D支出的就业乘数效应研究 ...
Learn about the multiplier effect and the spending/expenditure multiplier, including the marginal propensity to consume and the marginal propensity...
Keywords: 金融摩擦,财政支出,乘数效应,非线性financial frictions,fiscal spending,multiplier effect,nonlinear Full-Text Cite this paper Add to My Lib Abstract: 金融摩擦存在可能非线性地传播冲击,导致财政支出的非线性乘数效应。基于考虑金融摩擦的理论模型,分析了财政支出冲击对家庭部门最优投资决策行为的影响...
Discover what a multiplier is and its effect on income levels. Learn more about the definition, calculation, and formula of the multiplier in...
Going through a sequence of financial decisions of how much to save and spend, students learn how the initial fiscal shock sets off a chain reaction, leading to successive rounds of changes in spending and income. This simple framework can then be used to evaluate the effect of relaxing ...