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Multiplier Effect

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The multiplier effect refers to the phenomenon in which changes in investment, government spending, or other factors ripple out and ultimately generate a change several times greater than the original.
Investment Amount
Marginal Propensity to Consume
The proportion of the increase in consumption out of the total increase in income
National Income After Increase 
Multiplier Effect Times
Increased investment → Increased national income → Increased consumption → Increased national income → Increased consumption → Increased national income... and so on.

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