multiplier effect

Cultural  

1. 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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Example Sentences

"The fiber-optic cable allowed us to measure this incredible calving multiplier effect, which wasn't possible before," says Gräff.

From Science Daily • Nov. 14, 2025

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

From Seattle Times • Nov. 20, 2023

It could have a multiplier effect because private insurers often follow Medicare’s lead.

From Scientific American • Oct. 16, 2023

"To avoid teams accumulating and benefiting from the multiplier effect of several minor overspend breaches, we suggest that a second minor overspend breach automatically moves the team to a major breach," he writes.

From BBC • Oct. 17, 2022

When tax exemption lags behind net subsistence, then there is a multiplier effect on gross subsistence, with a fast increase of the tax void.

From Definition & Reality in the General Theory of Political Economy by Colignatus, Thomas