Economy, asked by Mannsaab, 1 year ago

Explain the concept and process of multiplier

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Answered by kapilchaudhary2

2

The multiplier effect. ... The multipliereffect refers to the increase in final income arising from any new injection of spending. The size of the multiplierdepends upon household's marginal decisions to spend, called the marginal propensity to consume (mpc), or to save, called the marginal propensity to save .

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