Scribd Logo
Upload

Welcome to Scribd!

  • Investment Multiplier PDF

    Uploaded by

    Parth Arora
    13 views2 pages
    A change in income can impact output, employment, and investment in the following ways: 1. An increase in income leads to an increase in consumer demand, business investment, and employment levels as more money is spent. 2. The multiplier effect describes how an initial change in income generates further changes in income as the additional income is re-spent in the economy. 3. The multiplier depends on the marginal propensity to consume (MPC), with a higher MPC resulting in a larger multiplier effect.

    Original Description:

    Original Title

    Investment multiplier Pdf.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    A change in income can impact output, employment, and investment in the following ways: 1. An increase in income leads to an increase in consumer demand, business investment, and employment levels as more money is spent. 2. The multiplier effect describes how an initial change in income generates further changes in income as the additional income is re-spent in the economy. 3. The multiplier depends on the marginal propensity to consume (MPC), with a higher MPC resulting in a larger multiplier effect.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    13 views2 pages

    Investment Multiplier PDF

    Uploaded by

    Parth Arora
    A change in income can impact output, employment, and investment in the following ways: 1. An increase in income leads to an increase in consumer demand, business investment, and employment levels as more money is spent. 2. The multiplier effect describes how an initial change in income generates further changes in income as the additional income is re-spent in the economy. 3. The multiplier depends on the marginal propensity to consume (MPC), with a higher MPC resulting in a larger multiplier effect.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    watmeut MultiplieL(R)

    meut Aeudiug wi
    A Caye in ue Jwwelt
    ue oulput auuel utrehore Eunp loy meul.
    aut
    9nreae In uue
    uat An
    dogical 9ncr ease ue level
    Bwine inwestmeu w
    inome, outþuk aud Enploy uls
    oewbb um
    inrease n ue ocuutive capauty
    uough
    Nulliblier eyure u a t
    The
    The operation o e
    in Inumc
    Q Chaye
    Chaye In 9wut meul Cous
    01 oukbut by a (ertu Jmoul wwch u a
    meul.
    Mulhple o ue Chaye in 9nwet

    wetmeul Nul»puer ws ue Rah' Chage


    ta nInwutmet
    Clhaipe
    In 9nome dun
    In ome Inreae
    xblaiw ue Ho a time
    in I nuesthet.
    due a du (Tese

    A A Chaug e in 9nome
    A Cnape in Inwutu
    Relationali Bewee MP aud Irwest nMenl
    Mulhblier
    The aMulbblier debends ubon ue Value
    Vaut
    MPC

    1-MPC
    Betotn MPC
    There Si'st a diTut Rlahonlih
    aud nwutmeu Mulhblier. Iy MPC , ue
    Value aMulhblier ald Asel.
    An tcononuynreasel Ao
    x 94 MP
    Mulh1iea would Be
    06 a o8 e

    MPC Mulhr
    R - MPC 10
    R-moeo inmc
    0 8
    R-Me
    ad MPS
    MPS
    Between Mulbliea
    h Relationahip
    REMPPS Ketaweew MPs
    rlation
    Thee frisk
    There A Negah ue
    Quel 9nwestne Nulplier.

    MPS Mullipic

    L mes
    0S

    You might also like