In Communities Such as Banff and Jasper, Both the Multiplier

question 13

Essay

In communities such as Banff and Jasper, both the multiplier effect and leakage play an important part in the economy.Define these terms.Using examples, explain which term provides a positive impact on the community and which has a negative impact.

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Definitions:

Inventory

Goods held for sale or lease, or raw materials used or consumed in a business.

Graduated-Payment Mortgage

A mortgage that has a fixed interest rate during the life of the mortgage; however, the monthly payments made by the mortgagor increase over the term of the loan.

Variable Interest

An interest rate on a loan or security that can change over time based on the underlying benchmark interest rates.

Security Interest

A creditor’s right to use collateral to recover a debt.