Government Expenditure Multiplier || Multiplier Effect || Macro Economics || Lecture 11 💱💱💱

Government Expenditure Multiplier. In this video, I will explain the Impact of Government Expenditure on National Income.
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[@rishavpandey991]

What a great explanation, your explanation is so simple and comprehensive that even a class 8 student can understand this.

[@padhakoobytamanna]

This made my day 😊

[@sandharbshuklabapb2173]

Mam i really appreciate your way of explanation.

[@padhakoobytamanna]

Thank you🙂

[@tarmanpreetsinghdhillon7970]

Thank you so very much

[@mohdshadab5524]

Nice one

[@juweriyaaziz6475]

Thank you❤

[@Utkarsh-oz3qi]

Mam why their is an inverse relation between govt. expenditure multiplier and MPS

[@padhakoobytamanna]

Conceptually-
When the government spends money on the economy,, it is generally for development like schools, infrastructure, health.. This increased the expenditure levels (Aggregate Demand), hence the consumption increases. And if consumption will increase, savings will fall....
Formula wise - MPS is (1-b), since there is a negative sign.. It works adversely...
Hope this helps 🙂