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Is there truly a multiplier effect

Is there truly a multiplier effect

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Multiplier effect takes place when a dollar spent or supplied, increases the demand or the money supply by the value of multiplier. But, happening of the multiplier effect is an ideal scenario when there is no leakage of money, there is no money held at home and there is no crowding out effect in the economy. But, in real world scenarios, these issues happen and multiplier effect does not take place in its full capacity. Further, if there is an inelastic demand in few of the industries, then increase in money supply, will not be able to stimulate the demand and the multiplier effect will also not take place as it should happen.

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