These diagrams are useful for explaining the concept of marginal propensity to consume (MPC). Actually, this fact it not so important when dealing with consumption functions, but it is very important if the y-axis is measuring planned expenditure.
Equilibrium national income occurs where Y = E, and this would be every point on the 45 degree line.
Anyway, the other line in the diagram is the one that represents consumption in the economy at each level of income. This next diagram shows the relationship between the consumption function and the savings function. The multiplier shows how the economy moves from one equilibrium point to another following a disturbance produced by a rise or fall in W or J. So, using the formulae, the value of the multiplier in the example above is 5 (1 divided by 0.2).
If we now bring in the government and the foreign sectors, the multiplier works in the same way, but there are more withdrawals from the economy.
Working with entrepreneurs in hundreds of dozens and dozens of industries and marketplaces I’ve seen a cross-section of what works and what doesn’t.
Let me give you a couple more examples so you can see how this will apply to your business. So of course Bart takes the insurance (and boy did he need it considering we were going off 10 or 15 foot jumps that day). Also, at this seminar in Colorado was the first time I met Alex Mandossian, part of his story is being responsible for millions and millions of dollars in sales via infomercials. The first example was an infomercial for a 35-mm Nippon camera for \$19.95 with 100 free rolls of film. As the marketing director for one of the biggest tooth whitening toothpastes around, he found a simple, yet ingenious way to increase the sale. Here’s an interesting fact – did you know nearly all of the infomercials you see on TV today wouldn’t make a profit unless they continued using their upsell?
Let me give you another real world example from Ron Popeil’s book “The Salesman of the Century”.
Ron has made millions on TV and one of his biggest secrets is capitalizing on using an upsell when customers call in. On one of my first sites – Instant Sales Letters – I originally introduced an upsell that 56% of buyers take.
Okay, I want to expand your mind even more and fill it with all kinds of examples…The next one is something I’ve used in the mail order business.
The upsell is one of the easiest (and most profitable) techniques you can start implementing tomorrow using the tools and scripts below! Remember, anytime a customer is at the point-of-purchase you have an opportunity to do a simple upsell. I can’t stress this enough – EVERY TIME a customer interacts with your business you need to train your staff to use the upsell.
Your “everyone” deal is for every patient who comes in the office for a consult, follow-up visit  or whatever.
The other day I ordered a computer monitors – well right when I was checking out there was a check box if I wanted to add another 12-month warranty and also another check box for an accessory pack. Believe or not – I’ve even seen a simple check box on an order form take a losing mail order promotion and turn it into a winner. Yes, I would also like to get the special _____ version that includes an additional ____ and ____. Or if you are mailing ANYTHING out to customers don’t overlook the opportunity to send out package inserts with your outgoing packages.
I’ll be showcasing the entire list of 9 Maverick Multipliers here on the blog over the next days – so be sure to sign up for updates so you don’t miss them.
Over the past 13+ years I’ve worked with a lot of different industries, marketplaces, niches, etc.
It’ll be a tiny handful of people as I beta test it but you’ll walk out of there actually making back an ROI before the 2 days are up because we are going to actually do it!
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We now assume that money is withdrawn from the economy via taxation and the purchase of imports. This means that is the Government increases spending by ?100m, the overall effect on UK real GDP will be less than ?200m.

When SSI Steel announced the closure of its plant in Redcar in September 2015, 1700 jobs were lost.
My goal is for you to instantly apply these to your business for increased revenue and profits. It was amazing all the simple tweaks he added that significantly increased his company’s revenue.
The bottom line increase was incredible because there was no additional cost of sale to reach this customer. Ron is that guy you’ve probably seen on late night infomercials selling his “Showtime Rotisserie Cooker”, “Pasta Machine”, “Food Dehydrator” and even that stuff you spray on your head to get rid of your bald spot. Once a customer (or client, subscriber, patient, etc.) makes a buying decision they’ve already decided to buy. They figure – heck, if I was going to spend \$40 bucks on Instant Sales Letters I might as well spend \$15 dollars more and get the whole shebang.
I just let them have an option of not only getting one tool kit for free with the Advanced membership (which is a deluxe version) but also the opportunity to buy several kits now for a preferential deal. I would also consider upsells once a patient has decided to have a major procedure scheduled. I would also like to order the Gold version which contains an additional 1xx pages of advanced information. The check box was for a \$697 tape series which was only mentioned in the PPS of the sales letter. Simple ways to create more money out of the business you’re doing already every single day.
It’s a detailed tutorial with practical examples of how to make more money by adding more value. It’s also really interesting to optimize the process test different offers (as you know already) in the upsells, etc. Vegas Hits lets you select bet per line only, because lines are fixed to the original 40 pay-line level.
What you’ll find on the former are different kinds of free spins with special wilds, while the latter is loaded with money prizes that can reward you from 20 up to 1,000 credits.
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Of course, we would need to assess redundancy money and benefit leves to get a more accurate estimate. And I hope that gives you a small inkling of the power this concept could hold for your business or practice.
I love Amazon and I buy lots of things from them – and they also show you additional items that other customers bought who bought your same item or frequently purchased together. If your salespeople close the deal in person – they should have some kind of add-on or deluxe version they offer once the prospect has already said yes.
Normally it’s sold for \$X but as a patient appreciation special for the month of March they can get for only \$Y.
That translated into serious r additional profits I would never have seen without the upsell. You simply come up with 1, 2 or maybe even a couple different check boxes people can click to get an additional product or service. Otherwise, they’ll just go back to Facebook or their email and click on the next thing that excites them. I’ve even had friends insert offers for my products into their outgoing packages with a special endorsement from them at the top and discount offer. Then after the cash surges we work on a few bigger picture things that really can drive your business in the 21st century. You don’t see many games released by this Las Vegas based and publicly traded company and if you find one you should probably get excited. This is not a bad thing as you have great chances of winning with just a 0.40 credit bet too.
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This includes NextGen, one of the web’s favourite brands who bring titles like Irish Eyes 2 and the sensational big money multiplier title Merlin’s Millions.

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When injections are greater than withdrawals, economic growth occurs – the economy is moving by a dynamic process towards a new equilibrium. So you see, the MPW is likely to be well over 0.5, giving a value of the multiplier of less than two.
Real GDP will grow by ?200m after this initial injection of ?100m new Government Spending (G). This loss in jobs meant a reduction in consumer spending in the area, which will create further job losses in local shops that depended on the steel employees’ spending. So I negotiated with her and we got the car at the price she wanted and even got more for her trade than I expected from the dealership.
At this point it’s not difficult to increase their order by simply offering them something else or a ‘deal’ on some deluxe version. It worked like this: Once somebody clicks on the order button on my page they are taken to another page (not the order page). Put something in the deluxe version that is so appealing they’ll have to upgrade (like for my marketing manual to cosmetic surgeons – they received a diskette with pre-done ads and letters for marketing certain procedures only with the Gold membership). In the mail order or Internet business you can simply put additional check boxes on the order form.
I’m going to use an example of a cosmetic surgeon – but I’m sure you can see how it will easily apply to any professional practice. Any one of these examples can transform a business and… you have 8 more multipliers coming. If you don’t own a phone, a TV or decent laptop then prioritise, what are you thinking? Couple this up with an amazing range of promotions with a superb new player offer for those looking to open an account here, and you’re looking at one of the best places to play on the web. However, the real draw for any serious slot head at Dr Vegas should be the amazing range of exclusive slot machines that you won’t find anywhere else.
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When W is greater than J, a contraction (recession) occurs – the economy shrinks towards a lower level of national income. Notice that if you spend 60p of an extra ?1, you must, by definition, be saving the other 40p.
You can see from the diagram that with so many withdrawals, the amount of money that subsequently flows around the economy after the initial injection is much smaller. There will be a time lag between when the households receive their factor incomes and when it all gets spent. On this new page I let them that today only they can become a special “Gold” member for only \$15 more and they’ll get 2 additional bonuses not available in the regular package.
The Sony Vaio Z Series is the best portable laptop on the market, but at ?2,400 is it good value for money? Titles like Rainbow’s Gold, Top Banana and Castle Wizard offer a high quality gaming experience that is not too unlike many of the top WMS slots. Keynes, who invented the concept of the multiplier, believed that Governments had a key role to play in influencing aggregate demand towards a steady state of economic growth. And then the money has to go round the circular flow again and again until the full ?125 million is finally spent. There is a downwards multiplier effect or net withdrawal from the economy which produces a cumulative loss of GDP.
Put another way, Governments could engage in fruitful economic demand management to help an economy out of a recession (defined as a fall in real GDP). Best stop reading now, because the next 1,200 words won’t make you feel better about your life. In a sense, the MPS represented the marginal propensity to withdraw (MPW), because saving was the only withdrawal.
On the other hand if you can consider spending ?500 on a pair of earphones find a comfy chair and start stroking your credit card because you’re about to learn these are the ones to get. In other words, households have to borrow money to consume, or dip into previously saved money, while they temporarily (one hopes!) have no income.
The initial ?100 million will multiply to give a final increase in total national income of much more than ?100 million.
In fact, there is a formula that you can use to find the multiplier, and then another formula that can be used to find the final increase in national income. And if this is something of a drop intro apologies, but value for money is the fundamental quandary when reviewing ACS‘s truly remarkable T2 monitors. Usually, the dealership doesn’t even make anything on the actual car – but they make tons of profit with all these upsells.