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What's the meaning of Fiscal Multiplier?

帮考网校2020-10-22 17:09:37

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The fiscal multiplier is a measure of the impact of government spending or tax policies on the overall economy. It reflects the extent to which an increase in government spending or a tax cut leads to an increase in national income and economic growth. The fiscal multiplier is typically expressed as a ratio of the change in national income to the initial change in government spending or taxes. A higher fiscal multiplier indicates a greater impact on the economy.

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