Answer to Question #327947 in Macroeconomics for Yandy

Question #327947

What is a multiplier

Expert's answer

Multiplier, in economics, numerical coefficient showing the effect of a change in total national investment on the amount of total national income. It equals the ratio of the change in total income to the change in investment.

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Consider the following Cobb Douglas Production Function: Y =√K √N when K = 49 and N = 812.2 Is t
2. 5. The ABC Company sells widgets at $9 each; variable unit cost is $6, and fixed cost is $60,000 per
3. Using the multiplier process, explain the effect of a rise in investment on output and price inan ec
4. 7. Elgar Toaster Co. is contemplating a modernization of its antiquated plant. It now sells its toas
5. 5. What is the effect on break-even quantity ofa. A decrease in unit price?b. A decrease in average
6. Think of a good or service you might like to provide to your community. Then, describe how you would
7. What are the two main types of asset price bubbles? Discuss some of the policy responses to possibl