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Investments glossary

Multiplier Definition


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By recurrently changing the horizon, things can be perceived from another angle and the perspectives of life can be reoriented in a captivating way. If not, the squeaking wheel of our mind will suffer from lack of oil and our vision of the world gets rusted.

— Erik Pevernagie

In economics, a multiplier broadly refers to an economic factor that, when increased or changed, causes increases or changes in many other related economic variables. In terms of gross domestic product, the multiplier effect causes gains in total output to be greater than the change in spending that caused it.


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