MULTIPLIER EFFECT Definition & Meaning

multiplier effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory's vicinity.

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Dwindling filming is having a broader “multiplier effect” on the local economy, said Councilmember Adrin Nazarian, who represents the eastern San Fernando Valley and introduced an earlier City Council proposal to streamline the city’s film permitting process.

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Biden’s move will have a multiplier effect.

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Second, there’s a multiplier effect.

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There’s an economic concept called “the multiplier effect,” which describes how the effect of spending is greater than the original money spent.

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That kind of multiplier effect illustrates the impact of The Carter Center fellowships, and it wouldn’t have happened without her tenacity, Cade said.

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multiplier multiply

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multiplier effect

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