--%>
Assignment Help - homework help

Multiplier effect

What is the multiplier effect?

E

Expert

Verified

The multiplier influence describes how an initial change in spending ripples through the economy to generate a larger change in real GDP. It take place because of the interconnectedness of the economy, where a change in Lasslett’s spending will produce more income for Gavidia, who will in turn spend more, producing additional income for Grimes.

   Related Questions in Finance Basics

  • Q : Describe the equilibrium price and

    Assume the total demand for wheat and the net supply of wheat per month in the Kansas City grain market are as: 16_Table for wheat.png

    		•
  • Q : Describe the role of cash and of

    Describe the role of cash and of earnings while a corporation is deciding how much, if any, cash dividends to pay to common stockholders. In the long-run earnings are essential to maintain dividend payments; however at the time an actual dividen

    		•
  • Q : Explain Equity Financing Equity

    Equity Financing: New or small businesses might find it hard to get debt financing therefore they turn to equity funding. The Equity financing frequently comes from non-professional investors like family, friends, or employees. This can as well come f

    		•
  • Q : Examples of high debt levels companies

    Give two instances of types of companies which would be best able to handle high debt levels.Companies which handle local telephone service and those which handle natural gas delivery to consumers would be assumed to comfortably be able to handl

    		•
  • Q : What is Budget Revision Budget Revision

    Budget Revision (BR): A document, generally approved by the Department of Finance, which cites a legal authority to authorize a modification in an appropriation. Usually, BRs either raise the appropriation or make adjustments to the groups or programs

    		•
  • Q : Define Claim Schedule Claim Schedule :

    Claim Schedule: It is a request from a state department to the State Controller's Office to distribute payment from a legal appropriation or account for a legal state obligation. The claim agenda recognizes the appropriation or account to be charged,

    		•
  • Q : Multiplier for private closed economy

    Normal 0 false false

  • Q : Legal factors to restrict a corporation

    Are there any legal factors which could restrict a corporation in its attempt to pay cash dividends to common stockholders? Describe. A firm may be legally limited as to the dividends it can pay through existing bond indentures or loan agreemen

    		•
  • Q : What is Pooled Money Investment Account

    Pooled Money Investment Account (PMIA) It is a State Treasurer's Office accountability account maintains by State Controller's Office to account for short-term investments procured by the State Treasurer's Office as designated by the Pooled Money Inve

    		•
  • Q : Firm risk of any capital budgeting

    Describe how to measure the firm risk of any capital budgeting project. The firm risk of a capital budgeting project measures the effect of adding a new project to the present projects of the firm.

    		•