Multiplier (economics)
A concept in economics / From Wikipedia, the free encyclopedia
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Not to be confused with the Lagrange multiplier, a mathematical tool often used in economics.
In macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable.
For example, suppose variable x changes by k units, which causes another variable y to change by M × k units. Then the multiplier is M.