In one paragraph explain elaborately what the multiplier is.

Question

Question

Answer 1

Answer #1

In simple words, the multiplier can be described as the factor which multiplies the value of base value to x times or 2x, etc.

The new effect can be from the due to new spending which multiplies the base value.

This term gives birth to the multiplier effect.

when there is a need to inject the money in the economy at a faster rate then this strategy used by the government to increase spending.

Answer 2

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