![Economics 101: Multiplier](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2018/01/1-27.png?fit=691%2C460&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What is the multiplier?
The Multiplier is a number, that tries to quantify and show, the amount income will change – due to a change in autonomous expenditures.
Formally, this written:
Multiplier = 1 / (1 – Marginal Propensity to Consume)