0
What are the practical differences between simple multiplier and super multiplier?
The simple multiplier implies that investment is the central determinant of output. The super multiplier combines the multiplier with the accelerator that indicates that investment is not autonomous, but is part of derived demand. Hence, the super multiplier indicates that capacity adjusted output is determined by autonomous demand. Autonomous demand in the case of the super multiplier would correspond to government spending, exports and some elements of consumption (particularly the wealthy whose consumption is not constrained by income). The practical difference is that not only demand determines output in the short run, but also in the long run. The economic system is effectively demand driven and Keynes' Principle of Effective Demand substitutes Say's Law.
What else can I help you with?
Does the simple money multiplier decrease as the reserve ratio decreases?
No, the simple money multiplier actually increases as the reserve ratio decreases. The money multiplier is calculated as 1 divided by the reserve ratio (MM = 1 / reserve ratio). Therefore, when the reserve ratio is lower, the denominator is smaller, resulting in a higher multiplier effect, allowing banks to create more money through lending.
What is the difference between heroin and Oxycontin?
There are many differences between heroin and OxyContin. A few simple differences are heroin is an opioid and illegal. OxyContin is a narcotic and legal.
What are the differences between simple leaves?
Margin may be smooth or have saw like projections
What is the differences between Hemichordata and Urochordata?
irum mustafa is hemichordate and kiran is urochordate SIMPLE
What is the difference between in and on in the sentence?
There are no example differences offered in the question.But, for a simple example: In is to go in to a room. On is to get on to the bed.
What is practical application?
a simple machine
What are the two types of microscopes and explain one differences?
The to types of microscope are as following : 1. Simple microscope 2. compound microscope differences between these both is as following: simple microscope has one Len but compound microscope has two Len.
What are the differences between strategic and tactical planning from the organization point of view?
In more simple words:Strategic: Doing right things. For this type of planing we stick to certain type of predefined set of rules.Tactical: Doing things right. For this type of planning we have to start from scratch and its more like practical execution.G-3 (Operations)
What are the differences between your moon and mars moons?
Our moon is, you know, orbits the Earth, and Mar's moon orbits around Mars. Simple.
Differences between ferns and seed plants?
A seedless plant has no seeds. A seed plant have seeds. It is very simple.
What does the simple multiplier equal?
The simple multiplier is a concept in economics that measures the effect of an initial change in spending on the overall income or output in an economy. It is calculated as 1 divided by the marginal propensity to save (MPS), or alternatively, 1 divided by 1 minus the marginal propensity to consume (MPC). For example, if the MPC is 0.8, the multiplier would be 1 / (1 - 0.8) = 5. This means that for every dollar of initial spending, total economic output would increase by five dollars.
What are the differences between Anne Frank and MrsFrank?
To keep it simple, Edith Frank and her daughter Anne were exact opposites in virtually every way.
