A phenomenon whereby a given change in a particular input, such as government spending, causes a larger change in an output, such as gross domestic product.
a tax cut for the wealthy will have a much smaller multiplier effect in the economy than one for the lower economic classes
Example sentencesExamples
Experts have suggested that there is a nine times market multiplier effect inherent in permanent open market operations.
Unpredictable multiplier effects still pose a forecasting challenge.
Manufacturing - and not services - has tremendous economic multiplier effects.
Subsidizing farmers doesn't have nearly the same multiplier effect on consumption.
During the '90s, macro multiplier effects had a very positive effect on the domestic economy.
Definition of multiplier effect in US English:
multiplier effect
noun
Economics
A phenomenon whereby a given change in a particular input, such as government spending, causes a larger change in an output, such as gross domestic product.
a tax cut for the wealthy will have a much smaller multiplier effect in the economy than one for the lower economic classes
Example sentencesExamples
Manufacturing - and not services - has tremendous economic multiplier effects.
Experts have suggested that there is a nine times market multiplier effect inherent in permanent open market operations.
Subsidizing farmers doesn't have nearly the same multiplier effect on consumption.
Unpredictable multiplier effects still pose a forecasting challenge.
During the '90s, macro multiplier effects had a very positive effect on the domestic economy.