--%>

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 : Define General Fund General Fund (GF):

    General Fund (GF): For lawful basis accounting and budgeting aims, the predominant fund for the financing state government programs, employed to account for revenues that are not particularly designated to be accounted for by another fund. The main so

  • Q : Order Quantity-Cycle Inventory-Safety

    Consider the following data pertaining to a distribution center.

    Q : Explain Continuously Vacant Positions

    Continuously Vacant Positions: On July 1, the positions which were continuously vacant for six successive monthly pay periods throughout the prior fiscal year are abolished by the State Controller's Office. The six successive monthly

  • Q : Distinguish among refinancing debt and

    Normal 0 false false

  • Q : Describe compensating balances its need

    Describe compensating balances and why do banks needs them from some customers? Under what situation would banks be most likely to impose compensating balances? Compensating balances are funds that a bank needs a customer to maintain in a non-i

  • Q : Explain Legislative Information System

    Legislative Information System (LIS): An on-line system formed and employed by the Department of Finance to maintain existing information regarding all bills introduced in the Assembly and Senate for the current 2-year session, and fo

  • Q : What is Proposition 98 Proposition 98 :

    Proposition 98: An initiative passed in the year November 1988, and amended in the year June 1990 election, which provides a minimum funding guarantee for school districts, community college districts, and other state agencies which give direct elemen

  • Q : Problem of time lags in enacting and

    Normal 0 false false

  • Q : Describe equilibrium price and quantity

    Assume the market for widgets can be described by the given equations:                     Demand: P = 10 - Q             &

  • Q : Financial crisis of India during 1997 I

    I have to explain Financial crisis of India during 1997. Can someone help me in this question ?