Black Bear Black Bear Classification and Evolution The Black Bear (also known as the American Black Bear) is a medium sized species of bear that is found inhabiting a variety of forested habitats across North America. The Black Bear is not only the most widespread bear on the North American continent but it...
multiplier - the number by which a multiplicand is multiplied. multiplier factor. number - a concept of quantity involving zero and units; every number has a unique position in the sequence. scale factor - a number used as a multiplier in scaling.
That means that an increase of net exports of $100 million leads to an increase in real GDP of $1 billion. Again, this is the multiplier effect at work in the economy. When you think about it, the MPC and the MPS are the key to this formula. When they change, the multiplier effect changes. Since the simple spending multiplier is based on the marginal propensity to consume, any increase in the MPC will increase the value of the multiplier. Likewise, any decrease in the MPS will increase the value of the multiplier.