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The multiplier effect refers to the concept in economics that small changes in investment or spending can lead to amplifying effects on the overall economy. Specifically, it suggests that an increase in spending by one person or entity leads to an increase in income for others, who then in tur...
The multiplier effect is a phenomenon used to describe an expansion in the money supply within a specific nation. With this effect, the ability of banking institutions to make loans to individuals and businesses increases. Seen as a logical sequence of events that can be used to redirect the ...
The multiplying effect in economics can tell you about the proportional relationship between the additional allocation of extra funds and the increases in revenue. This effect represents the changes that revenue experiences because of vital injections into the economy. This value can also help ...
aAn effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory...
3.(General Physics)physicsany device or instrument, such as a photomultiplier, for increasing an effect 4.(Economics)economics a.the ratio of the total change in income (resulting from successive rounds of spending) to an initial autonomous change in expenditure ...
Explain the expenditure multiplier effect Compute the size of the expenditure multiplierThe Expenditure Multiplier EffectKeynesian economics has another important finding. You’ve learned that Keynesians believe that the level of economic activity is driven, in the short term, by changes in aggregate ...
Noun1.multiplier factor- the number by which a multiplicand is multiplied multiplier number- a concept of quantity involving zero and units; "every number has a unique position in the sequence" scale factor- a number used as a multiplier in scaling ...
In economics, a multiplier broadly refers to an economic factor that, when changed, causes changes in many other related economic variables. The term is usually used in reference to the relationship between government spending and total national income. In terms of gross domestic product, the multi...
Influencing economic activity via fiscal policy is a core principle ofKeynesian economics. Measuring the Multiplier Effect The multiplier effect can be any factor greater than 1, except in the rare instances in which it fails. When the multiplier effect is positive, this means that the...