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Consider a simple macro model with demand- determined output. In such a model, the multiplier is larger, the
FV
Future Value, the value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.
Compound Interest
Interest calculated on the initial principal of a deposit or loan, as well as on the accumulated interest from previous periods.
Interest on Interest
The interest earned on the reinvestment of previous interest payments, commonly associated with compounding interest.
Reinvestment
The process of using dividends, interest, or any form of return earnings to purchase additional shares or units instead of receiving the earnings in cash.
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