The multiplier effect measures the impact that a change in investment will have on final economic output.

The MPC Multiplier Thus far, Bernanke’s stock market wealth effect appears minimal, especially compared to the wealth effect on income. While their respective MPCs are vastly different, we must also ...

Hence, the MPC and therefore the fiscal multiplier on UI benefits over the next year could be much higher than the average MPC on individual transfers. Government consumption. Government purchases of ...