The Multiplier Effect- Macro Topic 3.2

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In this video I explain the two multipliers that you will see in an introductory macroeconomics course: the simple spending multiplier and the money multiplier. I also cover the tax multiplier, which is always negative. Keep in mind that the spending multiplier increases when people save less and the multiplier decreases when people save more. As for the calculations, don't freak out. Most econ courses have basic math with numbers that are easy to calculate. Thanks for watching. Please like and subscribe. You rock!

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The introduction is funny AND it makes sense. He says the multiplier effect 4 times then something else twice then only once... love it

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