Multiplier

spend ₹100 on a road. the economy gets more than ₹100.

set how much each hand saves, then spend one ₹100 note and watch it ripple through the rest — or die fast

A government does not hand ₹100 to one person and stop there. The road crew spends their wages at the shop; the shopkeeper spends part of that on stock; the supplier spends part of that on their own rent — and each handoff is smaller than the last, because everyone saves something. Add up every handoff and the total the economy actually felt is not ₹100, it is ₹100 times one over the savings rate. That is why economists argue over the savings rate at all: it is the one number that decides whether public spending ripples for a while or dies at the second hand.

Concepts: scaling, exponential-growth.

An interactive you play with one thumb, on Wundr.