Change: The multiplier is equal to the reciprocal of the marginal propensity to save: the greater is the marginal propensity to save, the smaller is the multiplier. also, the greater is the marginal propensity to consume, the larger is the multiplier. The idea that every dollar   View changes from previous version. (Word count: 403)

Change: The Investment Multiplier is always one more than Tax MultiplierRationale: Based on two facts: The economy supports repetitive, continuous flows of expenditures and income Any change in income will vary both consumption and saving in the same direction as, and by a fraction of, the change in income   View changes from previous version. (Word count: 345)

Change: marginal propensity to save The idea that every dollar of spending creates more than one dollar in economic activity. Multiplier formulas Investment multiplier = 1/ (1-MPC) OR 1/ MPS Government multiplier = 1/ (1/MPC)(1-MPC) OR 1/MPS Tax multiplier = - MPC/ (1-MPC) OR - MPC/ MPS   View changes from previous version. (Word count: 327)

Change: Explanation:Explanation:-The multiplier effect shows that an initial change in spending can cause a larger change in DI and output.- The multiplier determines how much larger that change will be;be; it is the ratio of a change in GDP to the initial change in spending.   View changes from previous version. (Word count: 318)

Change:  (in AP econ terms, we do not consider the other leakages.)- When person A spends their money, it becomes person B's income. Then person B will go spend their income   View changes from previous version. (Word count: 318)

Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 319)

Change:  marginal propensity to save the idea that every dollar of spending creates more than one dollar in economic activity. multiplier formulas investment multiplier = 1/ (1-MPC) OR 1/ MPS government multiplier = 1/ (1/MPC) OR 1/MPS tax multiplier = - MPC/ (1-MPC) OR - MPC/ MPS   View changes from previous version. (Word count: 304)

Change: basically when person A spends their money, it becomes person B's income. Then person B will go spend their income which then becomes person C's money, etc. The cycle repeats.Change in GDP = multiplier x initial change in spendingRationale: Based on two facts the economy supports   View changes from previous version. (Word count: 288)

Change: - The multiplier determines how much larger that change will be; it is the ratio of a change in GDP to the initial change in spending. Multiplier = (change in real GDP) / (initial change in spending)Change in GDP = multiplier x initial change in spendingRationale: Based   View changes from previous version. (Word count: 188)

Change: any change in income will vary both consumption and saving in the same direction as, and by a fraction of, the change in income Initial change in spending will set off a spending chain throughout the economy chain of spendingspending, diminishesalthough inof diminishing importance at each step   View changes from previous version. (Word count: 149)