Multiplier
In an economic model, a multiplier is a number that quantifies the relationship between the change in one economic quantity and the change in another directly related economic quantity.
Multiplier
Change in the equilibrium value of a variable of interest per change in a variable over which one has control. "The" multiplier is the change in equilibrium income per change in government spending.
Neutrality of Money ...
Bank multiplier
Definition: Shows by how much total liabilities can increase as a result of a rise in liquid assets
Related glossary term: ...
The local multiplier effect (sometimes called the local premium) refers to the greater local economic return generated by money spent at locally-owned independent businesses compared to corporate chains or other absentee-owned businesses.
The multiplier is the multiple by which the expansion in the money supply is greater than the increase in the monetary base: if the multiplier is 10, then a £1 increase in the monetary base will cause a £10 increase in the money supply.
tax multiplier
factor applied in retrospective rating in order to increase the basic premium to cover state premium taxes for liability and workers compensation insurance.
EQUITY MULTIPLIER (EM) - shows the amount of assets owned by the firm for each equivalent monetary unit...
EQUITY OF REDEMPTION - The right a borrower has to pay out in full a mortgage against a property that h...
EQUITY OFFERING - see EQUITY CAPITAL.
equity multiplier - Related Articles
Obtaining an Equity Value Using the Weighted Average Cost of Capital (WACC)
Checklists ...
Multiplier
In stock index futures trading, the multiplier is the dollar value that is multiplied by the under value to determine the dollar market value of the futures contract.
Muni ...
MULTIPLIER " (1) "Effect": The ability of the commercial banking system to "create money" through lending activity. (2) Options: Refers to the $100 multiplier used to determine aggregate strike price and premiums on index options.
Multiplier: A multiplier is a number which when multiplied by the gross or net income provides the value of the property.
Multiplier
Shorthand for the way in which a change in spending produces an even larger change in INCOME. For instance, suppose a GOVERNMENT loosens FISCAL POLICY, increasing net PUBLIC SPENDING by pumping an extra $10 billion into education.
Multiplier
Figure used to multiply the cushion in order to calculate risky asset exposure.
multiplier the ratio of the change in real GDP to the shift in the aggregate expenditure line. (26)
N ...
Multiplier
The investment multiplier which quantifies the overall effects of investment spending on total income.
Multiplier - The ratio of the change in national income to the change in autonomous expenditure that brought it about. It is given by the equation 1/1-MPC (marginal propensity to consume) ...
Money Multiplier
The money multiplier is the number of times a given amount of money in the economy can be used to create credit.
Money multiplier The reciprocal of the required reserve ratio, assuming no leakages into currency and no excess reserves. It is equal to 1 divided by the required reserve ratio.
dynamic multipliers: The impulse responses in a distributed lag model.
Source: M.W. Watson, Ch 47, Handbook of Econometrics, p, 2899.
Contexts: econometrics; macro ...
MULTIPLIER: The cumulatively reinforcing interaction between consumption and production that amplifies changes in investment, government spending, or exports.
Multiplier Effect
Multirule system
Municipal Bond
Municipal Bond Fund
Municipal bond insurance
Municipal Convertible
Municipal improvement certificate
Municipal Inflation-Linked Securities
Municipal Investment Trust
Municipal notes ...
Multiplier - Is a factor which can increase the leverage of an instrument such as a floater or inverse floater. While sometimes the multiplier is less than 1.0, it is usually greater than 1.0.
Multiplier
In the case of an investment a factor that quantifies the overall effects of investment spending on total income.
A multiplier used in England and Wales to determine how much money owners of commercial and industrial properties must pay each year to their local governments. The rate, set by central government, is adjusted for inflation each year.
The multiplier is called the coupon leverage. Often, it is equal to 1, but not always. If it exceeds 1, the instrument is called a leveraged inverse floater.
earnings multiplier
An estimated price-earnings ratio adjusted for the current level of interest rates. Used to determine the value of a stock, based on Benjamin Graham's formula relating value to recent earnings and expected earnings growth rates.
(3) A multiplier in a numbering system. In a decimal system, each digit position is worth 10x the position to its right. In binary, each digit position is worth 2x the position to its right.
Statutory Multiplier: Retirement benefits are based on a formula set by Kansas law. Member's final average salary x percentage x years of service = annual benefit at normal retirement age.
The investment multiplier which quantifies the overall effects of investment spending on total income. The deposit multiplier which shows the effects of a change in bank deposits on the total amount of outstanding credit and the money supply.
Equity-linked policies Related: Variable life Equity market Related: stock market Equity multiplier Total assets divided by total common stockholders' equity; the total assets per dollar of stockholders' equity.
Multiplier
In Keynesian macroeconomic models, the ratio of the change in an endogenous variable to the change in an exogenous variable. Usually means the multiplier for government spending on income.
deposit multiplier A value that expresses the ratio of bank reserves to bank deposits. If bank... deposit slip This is a written notification that accompanies a bank deposit. It specifies... depositary receipt This is often called an ADR.
ROE = ROI x Equity Multiplier
ROE = (Net Profit After Taxes ÷ Total Assets) x (Total Assets ÷ Stockholders' Equity) ...
Net income multiplier
Net income per share of common stock
Net Insider Transactions
Net interest cost (NIC)
Net interest margin
Net Interest Margin Securities - NIMS
Net investment
Net investment income
Net investment income per share
Net lease ...
This is the 'money multiplier.' It does not stay constant, for several reasons. The Fed occasionally changes the required reserve ratio. Banks sometimes hold excess reserves, and sometimes borrow reserves from the Fed.
This number, also known as the 'Multiple', or 'Multiplier', is often used by investors and analysts to determine the upward potential of a share by comparing its multiplier to that of the particular industry as a whole.
Valuation multiple is a multiplier used to convert a single-point business economic benefit into the business value. The typical economic benefit used in small business valuation is the seller's discretionary cash flow (SDCF).
The market cap rate provides a trustworthier estimate of value than a market gross rent multiplier, as the cap rate formula uses more of a property's financial information.
P
P/E RATIO: (earnings multiplier) the ratio of stock price to earnings, using historical, current, or estimated data.
PAR VALUE (Face Value): The redemption value of a bond paid at maturity, typically $1,000.
However, it is not acomprehensive report on the condition of the property. The borrower shouldconsider a home buyer's report or structural survey if they require moredetailed information before deciding to purchase.Multiplier (Income) - see Income ...
The examiner would apply a multiplier to the common denominator to establish gross receipts.
If one considers that the price of the metal has doubled or tripled or quadrupled, depending on what period is being measured, then since gold shares should have a multiplier effect based on this, ...
Interest at maturity formulas differ from Interest Multiplier formulas (Zero Coupon) in that the former are based on simple interest theory while the latter are based on compound interest theory.
The latest DJIA value divided by the estimated current year earnings per share (EPS), with the index multiplier taken into account. Readings above 24 and below 8 are considered sell and buy signals respectively by many analysts.
A security that offers the holder what is usually a fixed rate of interest, plus the " option for a limited period to subscribe for shares or other bonds " issued by the company in question. The strike price and multiplier are set prior to the " ...
The policy analysis experiments study the effects of animal spirits and fiscal policy. The numerical results illustrate the calculation of a fiscal policy multiplier.
The risk weighting varies accord to each asset's inherent potential for default and what the likely losses would be in case of default - so a loan secured by property is less risky and given a lower multiplier than one that is unsecured.
Calculated by dividing an enterprise's annualized net income by its average capital for the period. Alternatively, it can be calculated by multiplying the enterprise's ROA by its leverage/equity multiplier.
programs) is one of several types of partnerships between leasing companies and manufacturers / suppliers. This form of cooperation is a good means of sales promotion for manufacturers / suppliers. For the leasing company, it is a "multiplier" for ...
The amounts in the third column are taken from the MACRS half-year convention table, which is the one most commonly used. Notice that the asset's tax basis does not change over the years -- only the percentage used as a multiplier changes each year.
The greater the risk, the higher the required rate of return, the lower the multiple, and vice versa. Other multipliers may be used such as multiples of annual revenues, or multiples of patients, ...
Actually, in a recession there is a powerful negative multiplier effect reducing output of all sectors.
Milton Friedman argues an examination of US data suggests there theories of credit cycles are wrong.
[ITDS] bunny bonds Multiplier bonds. [WCSU] buoyant A market in which prices have a tendency to rise easily with a considerable show of strength. [CFTC] Bureau of Labor Statistics (BLS) A research agency of the U.S.
 See also: Banks, Saving, Expense, Values, Equilibrium
  
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