Multiplier

 

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Multiplier

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/s, where s is the marginal propensity to save. See open economy multiplier.

Multiplier

The investment multiplier which quantifies the overall effects of investment spending on total income. The deposit multiplier which shows the effects of a change in bank deposits on the total amount of outstanding credit and the money supply.



Multiplier

Similar Matches

Export multiplier

Export multiplier

The multiplier for a change in exports; that is, the increase in GDP caused by a one-unit increase in exports.


Open-economy multiplier

Open-economy multiplier

The simple Keynesian multiplier for a small open economy. Equals 1/(s+m), where s is the marginal propensity to save and m is the marginal propensity to import.


Income multipliers or multiples

Income multipliers or multiples

The size of the mortgage that lenders offer, will often be worked out by multiplying your income each year by a set percentage.


Gross Income Multiplier

Gross Income Multiplier

A figure which, when multiplied by the annual gross income, will theoretically determine the market value. A general rule of thumb which varies with specific properties and areas.




 
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