Posts

Showing posts with the label Keynesian Multiplier

Fractal: Multiplier

Image
 Development and growth of the fractal demonstrate the ( money and Keynesian) Multiplier. The (Keynesian) Multiplier shows how an initial injection of expenditure into an economic system creates more income. This is because added expenditure sets off additional rounds of expenditure with each and every hand or round this income passes. This principle of 'multiplying' the initial injection can be demonstrated by using the fractal. In the diagram below, income is represented by each triangle's area, and the spending rounds by every iteration of the rule.     The initial injection (iteration 1) is represented by the first triangle, which has an arbitrary area of 1. The next round adds 3 extra triangles, increasing the total area of the snowflake. This (principle) process continues until the changes in the area of the triangle—after each iteration—no longer change the total area of the snowflake. In the diagram above, the total area reaches 1.6  at ar...