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

Economists say the work that undocumented immigrants do has a multiplier effect.

From Los Angeles Times • Jul. 30, 2025

November and March are deeply interconnected through the multiplier effect in the NET rankings.

From Seattle Times • Nov. 9, 2023

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

From Scientific American • Oct. 16, 2023

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

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