Which makes end result much larger than initial expenditure

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Reference no: EM13220005

Government spending is often too small to have the impact that governments usually want to see on the economy. However, something occurs in the economy after the initial government injection which makes the end result much larger than the initial expenditure. This is due in part to the concept of the multiplier. What is the multiplier and how does it result in spending having an "amplified" impact on the economy.

Reference no: EM13220005

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