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What Is the Aggregate Demand Multiplier and Why Does It

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What is the aggregate demand multiplier and why does it occur?


Definitions:

Synergy

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts after a merger or acquisition.

Price-Earnings Ratio

A valuation metric for a stock, calculated by dividing the current market price of the stock by its earnings per share.

Incremental Value

The additional or extra value generated by making a specific business decision, considered when evaluating multiple options.

Earnings per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.

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