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For example, if an increase in German government spending by €100, with no change in tax rates, causes German GDP to increase by €150, then the spending multiplier is 1.5. Other types of fiscal multipliers can also be calculated, like multipliers that describe the effects of changing taxes (such as lump-sum taxes or proportional taxes ).
The social multiplier effect is a term used in economics, economic geography, sociology, public health and other academic disciplines to describe certain social externalities. It is based on the principle that high levels of one attribute amongst one's peers can have spillover effects on an individual.
The local multiplier effect (sometimes called the local premium) is the additional economic benefit accrued to an area from money being spent in the local economy.The concept has been taken up by advocates for "spend local" campaigns in addition to more formal treatments in the area of regional economic development.
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The multiplier effect has been used as an argument for the efficacy of government spending or taxation relief to stimulate aggregate demand. In certain cases multiplier values less than one have been empirically measured (an example is sports stadiums), suggesting that certain types of government spending crowd out private investment or ...
This is the central contents of the money multiplier theory, and + / / + / is the money multiplier, [1] [2] a multiplier being a factor that measures how much an endogenous variable (in this case, the money supply) changes in response to a change in some exogenous variable (in this case, the money base).
The ripple effect is often used colloquially to mean a multiplier in macroeconomics. For example, an individual's reduction in spending reduces the incomes of others and their ability to spend. [ 1 ]
Here are some Mandela effect examples that have confused me over the years — and many others too. Grab your friends and see which false memories you may share. 1.