Fiscal Multiplier
The ratio of the change in GDP to the change in government spending (or tax cut) that caused it. A multiplier of 1.5 means $1 of spending produces $1.50 of GDP; a multiplier of 0.5 means $1 produces only 50 cents of GDP, with the rest offset by crowding out. The multiplier is highly state-contingent rather than a fixed constant: empirical estimates range from below 0.5 (tight monetary regime, near full capacity) to above 2.0 (zero lower bound, large output gap). State-contingency is the central feature, not a footnote.
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10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bond ETF · Bretton Woods
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