multiplier
In Keynesian macroeconomic models, the ratio of the change in an endogenous variable to the change in an exogenous variable. Usually means the multiplier for government spending on income. In the simplest Keynesian model of a closed economy, this is 1/s, where s is the Marginal propensity to save. See open economy multiplier.
Browse by Subjects
currency union
ACAUS
Contractionary monetary policy
large-cap fund
priceearnings ratio