Multiplier effect: Difference between revisions
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The '''multiplier effect''' is the effect of an injection or withdrawal of income upon the level of activity in an economy. Estimates of its magnitude are consequently a major factor in the formulation of [[fiscal policy]]. Its existence, and the factors that determine it, can be established by logical [[deduction]], but estimates of its magnitude depend upon [[induction (philosophy)|induction]] | The '''multiplier effect''' is the effect of an injection or withdrawal of income upon the level of activity in an economy. Estimates of its magnitude are consequently a major factor in the formulation of [[fiscal policy]]. Its existence, and the factors that determine it, can be established by logical [[deduction]], but estimates of its magnitude depend upon [[induction (philosophy)|induction]] | ||
Revision as of 02:55, 29 October 2012
The multiplier effect is the effect of an injection or withdrawal of income upon the level of activity in an economy. Estimates of its magnitude are consequently a major factor in the formulation of fiscal policy. Its existence, and the factors that determine it, can be established by logical deduction, but estimates of its magnitude depend upon induction