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Not the multiplier effect
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Direct questions and answers, this room is not for general discussion please
Direct questions and answers, this room is not for general discussion please
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- Lemon Half
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Not the multiplier effect
I recall from my O-Level (1979) and A-level (1981) Economics the multiplier effect
But there is another effect called something like "arithmetical" effect (but googling that doesn't give me any hits so the name isn't correct) that I cant recall the name of.
DAK?
But there is another effect called something like "arithmetical" effect (but googling that doesn't give me any hits so the name isn't correct) that I cant recall the name of.
DAK?
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- Lemon Half
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Re: Not the multiplier effect
didds wrote:I recall from my O-Level (1979) and A-level (1981) Economics the multiplier effect
But there is another effect called something like "arithmetical" effect (but googling that doesn't give me any hits so the name isn't correct) that I cant recall the name of.
DAK?
Can you describe the effect then to assist?
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- Lemon Half
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- 2 Lemon pips
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Re: Not the multiplier effect
Are you thinking of the difference between arithmetical average and geometric average?
I'm no mathematician, but my simplistic knowledge is geometric average is sometimes also called Compound Annual Growth Rate (CAGR). At a simplistic level it tries to explain why, if you lose 30% in year 1, then make 50% in year 2, then lose 20% in year 3 you are not back where you started.
Not sure that helped!
I'm no mathematician, but my simplistic knowledge is geometric average is sometimes also called Compound Annual Growth Rate (CAGR). At a simplistic level it tries to explain why, if you lose 30% in year 1, then make 50% in year 2, then lose 20% in year 3 you are not back where you started.
Not sure that helped!
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- Lemon Half
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Re: Not the multiplier effect
Boots wrote:Are you thinking of the difference between arithmetical average and geometric average?
no. There is an economic effect called the multiplier effect
https://www.investopedia.com/terms/m/mu ... effect.asp
eg I get a pay rise of ten quid a week. I save £2 a week. I sopend an additional £8 a week.
that £8 a week is earned by somebody. They save £2 a week and spend £6 a week.
That is earned by somebody who save £2a, abd spends £4 etc etc
So £10 extra for one person become multiple times that across the economy as a whole (Ive left taxation out of this for ease, but the exchequer also benefits in reality by tax on each set of trcikle down earnings)
There is I recall another effect which name I cant recall hence my question - but there is an analogy with arithmetic and geometric progressions in maths
![Smile :-)](./images/smilies/icon_e_smile.gif)
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- Lemon Half
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Re: Not the multiplier effect
didds wrote:that's why i wanted to google it
Not sure that helps then!
Income Effect?
Substitution Effect?
Wealth Effect?
Marginal propensity to ... effect?
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Re: Not the multiplier effect
didds wrote:I recall from my O-Level (1979) and A-level (1981) Economics the multiplier effect
But there is another effect ... that I cant recall the name of.
didds wrote: There is an economic effect called the multiplier effect
https://www.investopedia.com/terms/m/mu ... effect.asp
The 'Crowding-Out effect' ?
https://www.investopedia.com/ask/answer ... imulus.aspWhat Is the Crowding-Out Effect?
In theory, the crowding-out effect is a competing force for the multiplier effect.....
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- Lemon Half
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Re: Not the multiplier effect
nope.
Its definitely a single word (and "effect") akin to "arithmetical".
Its definitely a single word (and "effect") akin to "arithmetical".
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- Lemon Half
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Re: Not the multiplier effect
didds wrote:nope.
Its definitely a single word (and "effect") akin to "arithmetical".
Anything in the list of economic "effects" here:https://en.m.wikipedia.org/wiki/Category:Economics_effects
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- Lemon Slice
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Re: Not the multiplier effect
didds wrote:nope.
Its definitely a single word (and "effect") akin to "arithmetical".
Please look again at "Accelerator Effect", it is often discussed in conjunction with the Multiplier Effect.
e.g. "Multiplier shows the effect of a change in investment on income and employment whereas accelerator shows the effects of a change in consumption on investment."
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- Lemon Half
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Re: Not the multiplier effect
CryptoPlankton wrote:Please look again at "Accelerator Effect", it is often discussed in conjunction with the Multiplier Effect.
e.g. "Multiplier shows the effect of a change in investment on income and employment whereas accelerator shows the effects of a change in consumption on investment."
That's it!!! Sorry CP - I missed your previous post. Funny how the brain works - I got the beginning with an A thing but the rest was horribly wrong!
Oh well, it was 41 years ago - and I only got a B at A-level! LOL
many MANY thanks.
didds
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