Why will the multiplier effect of government transfer payments such as child benefit, pensions and social security be less than the full multiplier ef
Why will the multiplier effect of government transfer payments such as child benefit, pensions and social security be less than the full multiplier effect given by government expenditure on goods and services. Will this ‘transfer payments multiplier’ be the same as the tax multiplier? (Clue: will the recipients of such benefits have the same mpcd as the average person?)