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.
economic multiplier is in the Banking, Commerce & Finance and Economics, Politics, & Society subjects.
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