| | The General Theory of Employment, Interest and Money by John Maynard Keynes (Site not responding. Last check: 2007-10-21) |
 | | Kahn’s multiplier is a little different from this, being what we may call the employment multiplier designated by k', since it measures the ratio of the increment of total employment which is associated with a given increment of primary employment in the investment industries. |
 | | The multiplier tells us by how much their employment has to be increased to yield an increase in real income sufficient to induce them to do the necessary extra saving, and is a function of their psychological propensities. |
 | | In any case, the multiplier is likely to be greater for a small net increment of investment than for a large increment; so that, where substantial changes are in view, we must be guided by the average value of the multiplier based on the average marginal propensity to consume over the range in question. |
| www.marxists.org /reference/subject/economics/keynes/general-theory/ch10.htm (4116 words) |