investment multiplier

简明释义

投资增益乘数

英英释义

例句

1.In times of recession, increasing the investment multiplier 投资乘数 can help revive the economy.

在经济衰退时期，提高投资乘数 投资乘数可以帮助复苏经济。

2.The investment multiplier 投资乘数 is crucial for understanding how initial investments affect overall economic growth.

理解初始投资如何影响整体经济增长，投资乘数 投资乘数是至关重要的。

3.Economists argue that a higher investment multiplier 投资乘数 can lead to more job creation.

经济学家认为，更高的投资乘数 投资乘数可以带来更多的就业机会。

4.The government implemented a new policy to increase the investment multiplier 投资乘数 effect in the economy.

政府实施了一项新政策，以增加经济中的投资乘数 投资乘数效应。

5.By boosting infrastructure spending, the city hopes to enhance its investment multiplier 投资乘数 and stimulate local businesses.

通过增加基础设施支出，城市希望增强其投资乘数 投资乘数并刺激当地企业。

作文

The concept of the investment multiplier is a fundamental principle in economics that illustrates how an initial increase in spending can lead to a larger overall increase in national income. When the government or private sector invests in infrastructure, education, or other projects, it not only creates jobs but also stimulates additional spending by those who are employed as a result. This cascading effect is what economists refer to as the investment multiplier (投资乘数). To understand the investment multiplier, consider a simple example. Imagine a government decides to build a new highway. The initial expenditure on this project might be $1 million. This money pays for construction workers, materials, and various services. The workers who receive their wages will then spend a portion of that income on local goods and services, such as food, clothing, and entertainment. Assuming that the marginal propensity to consume (MPC) is 0.8, this means that for every dollar earned, workers will spend 80 cents and save 20 cents. Therefore, the first round of spending from the initial investment of $1 million will generate an additional $800,000 in consumer spending. This new spending will, in turn, create more jobs and income, leading to further rounds of spending. The investment multiplier can be calculated using the formula: 1 / (1 - MPC). In our scenario with an MPC of 0.8, the multiplier would be 1 / (1 - 0.8) = 5. This indicates that the original $1 million investment could ultimately lead to an increase in total economic activity of up to $5 million. The significance of the investment multiplier extends beyond individual projects; it plays a crucial role in shaping economic policy. Policymakers often use the multiplier effect to justify increased public spending during economic downturns. By investing in public works, they aim to kickstart economic growth, reduce unemployment, and increase consumer confidence. However, the effectiveness of the investment multiplier can vary based on several factors. For instance, if the economy is already at full capacity, additional investment may lead to inflation rather than increased output. Additionally, if households choose to save rather than spend their income, the multiplier effect will be diminished. Another important aspect to consider is the time lag associated with the investment multiplier. It takes time for investments to translate into actual spending and job creation. This delay can make it challenging for policymakers to gauge the immediate effects of their fiscal policies. In conclusion, the investment multiplier (投资乘数) is a vital concept that demonstrates the interconnectedness of spending and economic growth. Understanding this principle allows economists and policymakers to make informed decisions that can stimulate economic activity and improve overall welfare. By recognizing the potential impact of investments, we can better appreciate the importance of strategic spending in fostering a healthy economy.