TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

SPENDING MULTIPLIER [1 record]

Record 1 2015-02-13

English

Subject field(s)
  • Economic Doctrines, Systems and Policies
  • Investment
DEF

A ratio indicating the effect on total employment or on total income of a specified amount of a real capital investment. This important economic concept shows how fluctuations in the amount of investment ..., although small in relation to the national income, are capable of generating fluctuations of much greater magnitude in total employment and income .... As the multiplier is the ratio between employment or income and investment, it is thus the reciprocal of the ratio of savings to income, i.e. the reciprocal of the marginal propensity to save.

CONT

Some frequently used multipliers are: Employment multiplier. ... Spending multiplier, also called expenditure multiplier. ... Although there are these and several more multipliers used, when the word is used without a qualifier, it usually refers to this spending multiplier. This multiplier is often broken into its component parts; an investment multiplier and a government spending multiplier are identified.

French

Domaine(s)
  • Doctrines, systèmes et politiques économiques
  • Investissements et placements
DEF

[...] coefficient d'accroissement du revenu global par rapport à un volume d'investissement additionnel. D'abord présenté par R. F. Kahn comme un multiplicateur d'emploi (1931), à partir de l'observation qu'un volume d'emploi additionnel primaire entraîne des créations d'emploi secondaires par l'enchaînement des revenus distribués et des dépenses auxquelles ils sont affectés, le principe a été systématisé par Keynes sous forme de coefficient multiplicateur d'investissement : il exprime qu'une dépense additionnelle d'investissement crée des ondes successives de revenus dont l'importance dépend de la propension à consommer des bénéficiaires : le coefficient multiplicateur peut être ainsi mesuré [...]

Spanish

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