Share this site with del.icio.us Share this site with digg Share this site with reddit Share this site with technorati Share this site with furl Share this site with stumbleupon Share this site with google Add this site to Yahoo Bookmarks Click here to add us to your favorites Subscribe to our Feed





economic multiplier

Definition

Estimated number by which the amount of a capital investment (or a change in some other component of aggregate demand) is multiplied to give the total amount by which the national income is increased. This multiplier takes all direct and indirect benefits from that investment (or from the change in demand) into account. Expressed as the reciprocal of the marginal propensity to save.

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z