Spending multiplier: Difference between revisions
Jump to navigation
Jump to search
imported>Nick Gardner No edit summary |
imported>Nick Gardner No edit summary |
||
Line 1: | Line 1: | ||
{{subpages}} | {{subpages}} | ||
The economic [[multiplier effect]] occurs when an increase | The '''spending multiplier''' is an example of the economic [[multiplier effect]] which occurs when an increase in one agent's spending provokes a succession of increases in spending by other agents with a cumulative effect that exceeds the initial stimulus. |
Revision as of 15:44, 20 October 2012
The spending multiplier is an example of the economic multiplier effect which occurs when an increase in one agent's spending provokes a succession of increases in spending by other agents with a cumulative effect that exceeds the initial stimulus.