Investment Multiplier and Super Multiplier are very important concept of Macroeconomics to understand the effect of autonomous investment and induced investment in final increase in national income.
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
This theory relies on the market behaviour of the consumer to know about his preferences with regard to the various combinations for the two reactions and responses of the consumer.
Neo classical general equilibrium theory which is based on Walrasian theory of general equilibrium 2*2*2 model and Marshallian graphical representation
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
This theory relies on the market behaviour of the consumer to know about his preferences with regard to the various combinations for the two reactions and responses of the consumer.
Neo classical general equilibrium theory which is based on Walrasian theory of general equilibrium 2*2*2 model and Marshallian graphical representation
This is a ppt which will help you all to understand the multiplier concept in depth. It have plenty of step by step economic conversion, plenty of example.
Multiplier effect and its process, How does multiplier effect work, Assumptions, Types of Multiplier effect: Static Multiplier and Dynamic Multiplier; Derivation and limitation of Multiplier Effect.
This academic output meant for undergraduate students of BBS, BBA, B.Ed, and BA Psychology.
Emotions are biologically-based psychological states brought on by neurophysiological changes, variously associated with thoughts, feelings, behavioural responses, and a degree of pleasure or displeasure.
Observational Learning Theory and Its Application.pdfKhemraj Subedi
Observational learning theory, also known as social learning theory or modeling, is a psychological theory developed by Albert Bandura that explains how people learn new behaviors by observing others. His work was published in 1977 book titled Social Learning Theory. According to this theory, learning can occur through direct experience or through the observation of others' actions, behaviors, and the consequences they experience.
Learning in Psychological Perspectives.pdfKhemraj Subedi
In psychology, "learning" refers to a relatively permanent change in behavior, knowledge, or capability resulting from experience. Learning involves the acquisition of new information, skills, attitudes, or behaviors through various processes. Psychologists study learning to understand how individuals or animals acquire, retain, and apply knowledge or behaviors.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
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#pinetwork
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
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USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
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USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
1. By:
Khemraj Subedi
Assistant Professor
Far Western University
PhD Scholar in Economics
M.Phill (Economics)
M.A. (Economics)
M.Ed. (Economics)
Simple Multiplier and Super
Multiplier
2. Simple Multiplier and Super
Multiplier
The simple multiplier implies that investment is
the central determinant of output.
An investment multiplier similarly refers to the
concept that any increase in public or private
investment has a more than proportionate positive
impact on aggregate income and the general
economy.
The super multiplier combines the multiplier with
the accelerator that indicates that investment is not
autonomous, but is part of derived demand.
Hence, the super multiplier indicates that capacity
adjusted output is determined by autonomous
demand.
3. Autonomous demand in the case of the super
multiplier would correspond to government spending,
exports and some elements of consumption
(particularly the wealthy whose consumption is not
constrained by income).
The practical difference is that not only demand
determines output in the short run, but also in the
long run.
The economic system is effectively demand driven
and Keynes' Principle of Effective Demand
4. The concept of Multiplier occupies an important place
in Keynesian theory of income, output and employment.
It is an important tool of income propagation and
business cycle analysis.
According to Keynesian framework, employment
depends upon effective demand, which in turn, depends
upon consumption and investment(Y=C+I).
Keynes designed framework to show the relationship of
a small increase in investment to final increase in
income.
It is very closely connected with the concept of the
marginal propensity to consume(MPC).
5. F. Kahn ," Multiplier is the ratio of the final
change in income to the initial change in
investment."
Arithmetically,
∆Y = K. ∆I
Where, ∆Y = Change in income.
∆I = Change in investment.
K = Multiplier
Therefore , we get
K = ∆Y / ∆I
6. Example
Suppose , initial investment is Rs.100 Million
and multiplier coefficient is 5 ( MPC = 0.8) ,
then find out final increase in income.
Solution: Given, ∆I = 100 Million
Multiplier (K) = 5 (K= 1/1-MPC)
We have, Final increase in income, ∆Y = K.∆I
= 5 x Rs.100 Million
∆Y = Rs. 500 Million
7. Multiplier Formula Multiplier = K = 1/1-MPC or, K =
1/MPS
Calculation of multiplier or Income propagation in
multiplier ( MPC = 0.8)Period ∆I
( Rs. Crore)
∆Y
( Rs. Crore)
∆C
( Rs. Crore)
∆S=∆Y-∆C
( Rs. Crore)
1
2
3
4
-
-
(and so on)
100
-
-
-
-
-
-
-
100
80
51.2
40.96
-
-
-
-
80
64
40.96
32.768
-
-
-
-
20
16
12.8
10.24
-
-
-
-
Total 100 500 400 100
8. The concept of supermultiplier is the
mathematical combination of multiplier of Keynes
and accelerator of Aftalian.
Prof. J.R. Hicks has interacted both multiplier and
accelerator with a view to measuring the total
effect of initial investment on income.
The combined effect of the multiplier and the
accelerator is also called the leverage effect.
Super multiplier
9. The super multiplier is worked out by combining
both induced consumption (MPC) and induced
investment (MPI). Defined as;
K’ = 1 / ( 1- MPC – MPI)
The super multiplier is thus defined as the ratio of
change in income to a change in autonomous
investment when the induced investment is also
present.
10. Concept of Super Multiplier
The concept of super multiplier was developed J.
R. Hicks in 1950 by combining the concept of
multiplier and accelerator to give new concept of
super multiplier.
The concept of super multiplier is derived by
combining both induced consumption
(∆C/∆Y=MPC) and induced investment
(∆I/∆Y=MPI).
11. The simple multiplier measures the
effect of autonomous investment
in the final increase in aggregate
income where as accelerator
measures the effect of induced
investment in the final increase in
aggregate income.
12. But, super multiplier measures
the effect of both induced
consumption and induced
investment in the final increase
in aggregate income.
13. Thus, super multiplier is
combination of both simple
multiplier and accelerator
designed to measure the final
effect of initial investment
outlays to the final increase in
14. Derivation of Super multiplier
Let, the equilibrium of a two sector economy be
expressed as:
Y = C+I .... ..... ..... ..... ...... (i)
We know,
I = Ia + Ii
∴ I = Ia+ V.Y ..... ...... ...... (ii) ( ∵ Ii
= V.Y)
Similarly
C = a + b Y............. ...... .......... (iii)
Where, a = autonomous consumption
b= ∆C/∆Y
15. Substituting (ii) and (iii) in equation (i)
Y = a + b Y + Ia + V.Y .... ..... ......
.....(iv)
Let, Ia changes by ∆I so that Y also
changes by ∆Y,
Y+∆Y=a +b(Y+∆Y)+ Ia+∆ Ia+ V(Y+∆Y
)...(V)
Subtracting equation (iv) from (v), we
16. Dividing both sides by ∆Y,
1 = b + ∆ Ia/∆Y +V
or, 1 - b- V = ∆ Ia/∆Y
or, ∆Y/∆ Ia = 1/1 - b- V
∴ Ks = 1/1-b-V
Where, b= ∆C/∆Y = MPC
V= ∆I/∆Y =MPI or Accelerator
coefficient.
17. If V = 0, Ks = 1/1-b-0 = 1/1-b =K
Where, K = Simple multiplier
Let, b = 0.5, V= 0.4
∴ K = 1/1-b = 1/1-0.5 = 2 ( i.e. V= 0)
∴ Ks = 1/1-b-V = 1/1-0.5-0.4 = 10
18. Period
Initial
Investment
Induced
consumption
(MPC = 0.50)
Induced
Investment
(MPI (Ii )= 0.4)
Increase in
income (Delta Y
= MPC + MPI)
Total increase
in income
1st - - - -
2nd 50.00 - - 50.00 50.00
3rd 25.00 20.00 45.00 95.00
4th 22.50 18.00 40.50 135.50
5th 20.25 16.20 36.45 171.95
6th 18.23 14.58 32.81 204.76
7th 16.40 13.12 29.52 234.28
8th 14.76 11.81 26.57 260.85
9th 13.29 10.63 23.91 284.77
10th 11.96 9.57 21.52 306.29
11th 10.76 8.61 19.37 325.66
12th 9.69 7.75 17.43 343.09
13th 8.72 6.97 15.69 358.79
14th 7.85 6.28 14.12 372.91
. . . . .
. . . . .
0 0 0 500.00
K' = 1 / (1-0.5-.4) K' = 10
Note: When K' is 10, the initial investment grow
equivalent to 10 fold in terms of national income
SUPERMULTIPLIER PROCESS
19. When we introduce the induced investment in
autonomous investment, the total investment will
have two components:
a)autonomous investment(Ia) and
b)induced investment(Ii )
I = Ia + Ii
20. The simple multiplier implies that investment is the central
determinant of output.
The super multiplier combines the multiplier with the accelerator
that indicates that investment is not only autonomous, but is part
of derived demand.
Hence, the super multiplier indicates that capacity adjusted
output is determined by autonomous demand.
What are the practical differences between simple
multiplier and super multiplier?