Question

Elaborate the reverse operation of the multiplier and why it is called

double edged weapon.​

Answer 1

Answer:

gud night..................

Answer 2

Explanation:

⭐The multiplier principle is a direct implication of Keynesian economics.

⭐The key to the multiplier principle is induced expenditures, expenditures that depend on aggregate production and income, especially induced consumption expenditures.

⭐ The multiplier effect refers to the increase in final income arising from any new injection of spending. The size of the multiplier depends upon household's marginal decisions to spend, called the marginal propensity .