11/20/2020

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Multiplier

Y_{{t}}-(1+b)cY_{{t-1}}+bcY_{{t-2}}=(C_{{0}}+I_{{0}})
Multipliers can be calculated to analyze the effects

A multiplier value of 2x would therefore have the result of doubling effect.

 A multiplier is simply a factor that amplifies or increase the base value of something else

What Is the Multiplier Effect?

The multiplier effect refers to the proportional amount of increase, or decrease, in final results from an injection, or withdrawal.