Spending multiplier: Difference between revisions
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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 16:44, 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.