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प्रश्न
What do you mean by leakages of multiplier?
लघु उत्तरीय
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उत्तर
According to Prof. Peterson, a leakage in the multiplier occurs when a portion of income is not used to buy currently produced goods and services. This unspent income is considered to have leaked out of the income stream. Because of these leakages, the full increase in income is not directed toward consumption, which reduces the overall effect of the multiplier.
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