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What is a macroeconomic multiplier?
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in Economics and Finance by Platinum (138,124 points) | 22 views

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The Spill-over effects of how the injected expenditure will 'snow-ball', leading to economic growth.

 

- Also known as the Ripple or Snowball effect
- Derived from the Marginal Propensity to Consume
- More spending by one person results into an income by the other
- Two elements are important: Consumption and Savings
by Platinum (138,124 points)
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