In this article we will discuss about Multiplier and Accelerator in Economics:- 1. Concept of Multiplier 2. Relation between MPC and Multiplier 3. Working 4. Reverse Working 5. Assumptions 6. Leakages 7. Criticisms 8. Importance 9. Principle of Acceleration 10. Equational Model 11. Working 12. Importance. Concept of Multiplier: The concept of multiplier is an […]
Multiplier and Accelerator in Economics: Working, Equational Model and Limitations
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Interaction of Multiplier and Accelerator (With Significance) | Investment | Economics
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In this article we will discuss about Interaction of Multiplier and Accelerator:- 1. Combined Effect of Multiplier and Accelerator 2. Super-Multiplier 3. Significance of Multiplier – Accelerator Interaction Combined Effect of Multiplier and Accelerator: In order to measure the total effect of initial investment expenditure on income, it is necessary to combine the effects of […]
5 Main Principles of Lending Followed by Banks
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The following points highlight the five main principles of lending followed by banks. The principles are: 1. Liquidity 2. Safety 3. Diversity 4. Stability 5. Profitability. Principle # 1. Liquidity: Liquidity is an important principle of bank lending. Bank lend for short periods only because they lend public money which can be withdrawn at any […]