Question

What is the multiplier effect, and how can you prevent if from happening?

Answer 1

Answer:

 The multiplier effect is the economical process that basically increase the final and national income disproportionately which results in the greater consumption as compared to the amount of the initial spend.

 In other words we can define as the capital implantation, regardless of whether it is in the legislative or corporate level, ought to have snowball impact in the monetary action.

It can be prevent by many ways by increasing the reserve ratio in the economical sector and by also increasing the taxes.