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23 May, 02:04

Describe the multiplier effect

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  1. 23 May, 02:21
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    in macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable. for example, suppose variable x changes by 1 unit, which causes another variable y to change by M units. then the multiplier is M
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