  In this paper, we derive a formula for the present value of future consumer
goods multiplier based on the assumption that a constant share of investment in
the production of consumer goods is expected. The present value appears to be
an infinite geometric sequence. Moreover, we investigate how the notion of the
multiplier can help us in macroeconomic analysis of capital and investment
dynamics and in understanding some general principles of capital market
equilibrium. Using the concept of this multiplier, we build a macroeconomic
model of capital market dynamics which is consistent with the implications of
classical models and with the market equilibrium condition but gives additional
quantitative and qualitative predictions regarding the dynamics of shares of
investment into the production of consumer goods and the production of means of
production. The investment volume is modeled as a function of the multiplier:
investments adjust when the value of the multiplier fluctuates around its
equilibrium value of one. In addition, we suggest possible connections between
the investment volume and the multiplier value in the form of differential
equations. We also present the formula for the rate of growth of the
multiplier. Independently of the implications of capital market dynamics
models, the formula for the multiplier itself can be applied for the evaluation
of the present value of capital or the estimation of the macroeconomic impact
of changes in investment volumes. Our findings show that both the exponential
and hyperbolic discounting in combination with empirical evidence available
lead to the value of the multiplier that is close to one.
