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

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

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

But the multiplier effect from wrongly indexing taxes can be even faster.

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