multiplier effect
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Definition of 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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Words nearby multiplier effect
multiplicative group, multiplicative identity, multiplicative inverse, multiplicity, multiplier, multiplier effect, multiply, multiply-connected, multipolar, multiport, multipotent
The New Dictionary of Cultural Literacy, Third Edition
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