Answer to Question #212639 in Macroeconomics for mkay

Question

how to come up with the value of multiplier?

Answer 1

A multiplier refers a factor of amplification of something's base value. For example, a 2x multiplier doubles the base figure. A 0.5x reduces by half the base figure. Coming up with a multiplier depends with how much magnification is required for the base value.

Therefore multiplier is equal to the final value divided by the base value