Describe the Multiplier Effect in Your Own Words
Explanation The multiplier refers to the effect on income of a change in autonomous expenditures. The effect of a relatively small change in one economic factor such as rate of saving or level of consumer credit in inducing a disproportionate increase or decrease in another such as gross national product. Reading The Multiplier Effect Macroeconomics For example tourism in an area will create jobs in an area therefore the employees of the tourism industry will have some extra money to spend on other services and therefore improving these other services in that area allowing further. . These are not feel good leaders. Describe the multiplier effect in your own words. Describe the multiplier effect in your own words. Economics questions and answers. Who are the experts. The multiplier effect occurs when an initial injection into the circular flow causes a bigger final increase in real national income. The lar...