Definition
A number which indicates the magnitude of a particular macroeconomics policy measure. In other words, the multiplier attempts to quantify the additional effects of a policy beyond those that are immediately measurable. For example, a decrease in taxation will have more of an effect than just the value of the reduced taxes. It will lead to greater disposable income which might cause an increase in consumption, which in turn might increase employment in industries which enjoy greater demand and so on. So the total effect of the implemented policy equals the effect of the policy measure, times the multiplier. This is true of most macroeconmic policy measures, because the actual effect of the measure cannot be quantified by the effect of the measure itself.
This content can be found on the following page:
http://www.investorwords.com/cgi-bin/getword.cgi?id=5669&term=multiplier
email to a friend
print this definition
cite this definition
link to this page
Copy and paste this HTML in your website to link to this page
'multiplier' appears in these other terms:
equity multiplier, earnings multiplier, deposit multiplier, net income multiplier, multiplier effect, investment multiplier
'multiplier' appears in the definitions of these other terms on BusinessDictionary.com: sales multiple, economic multiplier, equivalent labor factor (ELF), present value (PV) factors, profit multiple, and 
Related Research Articles from the InvestorGuide.com University
Technical Analysis
Unlike fundamental analysis, technical analysis ignores the company underlying the stock and instead tries to predict price changes by studying the market itself. We examine technical analysis concepts like moving averages, support and resistance, advance/decline lines, relative strength, momentum, and volume.
Stock Strategies
Learn about various strategies for investing in stocks, including the “buy and hold approach,” analyzing market timing, and estimating a company’s potential for growth.
Fundamental Analysis
This investment strategy involves evaluating a stock by examining the company, especially its operations and its financial condition. Here we look at several valuation methods, factoring in price/earnings ratio, PEG, dividend yields, book value, price/sales ratio, and return on equity.
|
|
