5. What effects do you think COVID might have had on the behavior of the multiplier? Can you think of any examples from your own experience?

5. COVID has led to severe lockdowns and the spread of diseases all over the globe. This has led to a reduction in the income of most consumers and led to a downfall in the national income of the economy. This has automatically led to a reduction in purchasing power of the consumers and reduced consumer confidence, hence the value of the multiplier has also been reduced. Example: Fall in the income of the consumers due to stringent lockdowns and social distancing practices. Fall in investment pattern, due to downfall in the growth rates of the economy, where most of the nations faced negative growth rate.