Multiplier effect: Difference between revisions

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In economics, the '''multiplier effect''' refers to the fact that an increase of an economic aggregate may lead to an increase of this aggregate or another greater than the initial raise. See [[Spending multiplier]].
The '''multiplier effect''' is the tendency for an increase in [[public expenditure]] to result in an increase in [[gross domestic product]] that exceeds the expenditure increase by a factor termed "the multiplier".
 
The multiplier effect is also known by bankers. An initial mortgage creates a deposit on a client account. This deposit can be partially lent to another client and so on.

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The multiplier effect is the tendency for an increase in public expenditure to result in an increase in gross domestic product that exceeds the expenditure increase by a factor termed "the multiplier".

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