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What Is the Multiplier? How Is It Calculated? Why Is

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What is the multiplier? How is it calculated? Why is the multiplier related only to consumption spending?


Definitions:

Capitalism

An economic system based on private ownership of the means of production and the creation of goods or services for profit.

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critical analysis of capitalism and his theories about communism.

Demographic Transition

The process of change in a society's population from high birth and death rates to low birth and death rates, often associated with economic development.

Deaths

The termination of all biological functions that sustain a living organism.

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