Endogenous variable in the context of Multiplier (economics)


Endogenous variable in the context of Multiplier (economics)

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👉 Endogenous variable in the context of Multiplier (economics)

In macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable.

For example, suppose variable x changes by k units, which causes another variable y to change by M × k units. Then the multiplier is M.

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