Investment Multiplier: Definition, Example, Formula to Calculate
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Investment Multiplier: Definition, Example, Formula to Calculate
The investment multiplier refers to the stimulative effects of public or private investments and is rooted in the economic theories of John Maynard Keynes. It tries to determine the economic impact of public or private investment and is calculated based on the marginal propensity to consume (MPC) and the marginal propensity to save (MPS). John ...
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