Archive | Multiplier

Investment Multiplier: Definition, Logic and Assumptions

In this article we will discuss about Investment Multiplier:- 1. Definition of Investment Multiplier 2. Logic of the Investment Multiplier 3. Factors 4. Assumptions 5. Limitations 6. Importance  7. Practical Problems. Contents: Definition of Investment Multiplier Logic of the Investment Multiplier  Factors Preventing the Investment Multiplier Assumptions of Investment Multiplier Limitations of the Investment Multiplier Importance of the Investment Multiplier [...]

By |2016-05-16T07:47:35+05:30May 16, 2016|Investment Multiplier|Comments Off on Investment Multiplier: Definition, Logic and Assumptions
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Investment Multiplier: Concept, Process and Limitations

Investment Multiplier: Concept, Process and Limitations! Change in Equilibrium National Income: (Static) Investment Multiplier: The time has come to pose a question of direct importance to the policymakers since aggregate demand is inadequate to put the economy on to the path of full employment. Fig. 10.11 or 10.12 tells us that the economy remains below the state of full employment— [...]

By |2016-01-29T10:03:52+05:30January 29, 2016|Investment Multiplier|Comments Off on Investment Multiplier: Concept, Process and Limitations
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How Balance Budget Multiplier helps to keep the Budget Balance?

The balanced budget multiplier refers to the effects of an increase in government purchases accompanied by an increase in taxes such that in the new equilibrium, the budget surplus is exactly the same as in the original equilibrium. The result is that the multiplier of such a policy change, the balanced budget multiplier, is equal to 1. A multiplier of [...]

By |2015-12-01T15:23:13+05:30November 25, 2015|Multiplier|Comments Off on How Balance Budget Multiplier helps to keep the Budget Balance?
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