Would a Larger Multiplier Lead to?

a larger multiplier means that small changes in spending lead to large changes in GDP, and thus recessions would be more severe.

What happens when multiplier increases?

In economics, a multiplier broadly refers to an economic factor that, when increased or changed, causes increases or changes in many other related economic variables. In terms of gross domestic product, the multiplier effect causes gains in total output to be greater than the change in spending that caused it.

What is the effect of the multiplier?

The multiplier effect - definition The multiplier effect indicates that an injection of new spending (exports, government spending or investment) can lead to a larger increase in final national income (GDP).