Question

explain working of multiplier ​

Answer 1

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Working of the Multiplier: Multiplier is the mechanism through which income gets propagated as a result of added investment. ... Assuming the marginal propensity to consume as 1/2, let us suppose further that there is an investment of Rs. 20 crores in public works. The MPC being 1/2 (multiplier) will be 2

Answer 2

It refers to the increase in final income arising from any new injection of spending