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

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multiplier effect

Because it was so truthful, because it came from such a truthful place, it had a multiplier effect when we put it on TV.

From Los Angeles Times ● Aug. 6, 2026

"Vinted's journey has certainly been intertwined with the broader development of Lithuania's startup ecosystem," said the company's vice president for corporate affairs, Jessie de la Merced, arguing that its presence has had a "multiplier effect".

From Barron's ● Aug. 2, 2026

There can be a multiplier effect from supporters who gave only $5 but then displayed a yard sign or bumper sticker and talked to neighbors about their candidate.

From MarketWatch ● Jun. 3, 2026

"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

The interaction between indexation, net subsistence, the tax parameters cause a multiplier effect.

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