value of money multiplayer is determined
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What Is the Multiplier Effect?
The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.
KEY TAKEAWAYS
The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.
The most basic multiplier used in gauging the multiplier effect is calculated as change in income / change in spending and is used by companies to asses investment efficiency.
The money supply multiplier is also another variation of a standard multiplier, using a money multiplier to analyze effects on the money supply.
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