A number which indicates the magnitude of a particular macroeconomic policy...
is a. the investment multiplier which quantifies the overall effects of investment spending on total income; or, b. the deposit multiplier which shows the effects of a change in bank deposits on the total amount of outstanding credit and the money supply.
In Keynesian macroeconomic models, the ratio of the change in an endogenous variable to the change in an exogenous variable. Usually means the multiplier for government spending on income. In the simplest Keynesian model of a closed economy, this is 1/, where is the marginal propensity to save. See open economy multiplier.
the number of times an increase in government spending or investment increases GNP due to secondary consumption.
An economic measure that estimates the additional employment and income generated when income is earned by the export sector and spent and respent in a local economy. The size of a region's multiplier depends upon the propensity of individuals to spend money in the local economy rather than spending it outside the local area.
The ratio between the direct effect on output or employment and the full effect, including the effects of second order rounds or spending. Multiplier effects greater than 1.0 require the existence of involuntary unemployment.
an estimate of the increment in the expenditure of one sector to an increment of change in another sector
The ratio of a change in equilibrium income to the initial change in expenditure that brought it about.
the factor by which a change in a component of aggregate demand, like investment or government spending, is multiplied to lead to a larger change in equilibrium national output
The multiplier was a concept developed by Keynes that said that any increase in injections into the economy (investment, government expenditure or exports) would lead to a proportionally bigger increase in National Income. This is because the extra spending would have knock-on effects creating in turn even greater spending. The size of the multiplier would depend on the level of leakages.
see Income Multiplier.
A number used to multiply a dollar amount to get an estimate of economic impact. It is a way of identifying impacts beyond the original expenditure. It can also be used with respect to income and employment.
The number of times new investment spending will be respent to produce a certain amount of new income.
A specified number used in some parenting time adjustment formulas to account for the duplicated costs when children spend a significant amount of time in both parents' households.
Is a concept that was originally developed by Keynes. It stated that any increase in injections into the economy (investment, government expenditure or exports) would lead to a proportionally bigger increase in National Income.
The multiplier is the amount by which a change in autonomous expenditure is magnified or multiplied to determine the change in equilibrium expenditure and real GDP.
In economics, a multiplier effect – or, more completely, the spending/income multiplier effect – occurs when a change in spending causes a disproportionate change in aggregate demand. It is particularly associated with Keynesian economics; some other schools of economic thought reject or downplay the importance of multiplier effects particularly in the long run.