Meaning of multiplier effect in English:

multiplier effect


  • A phenomenon whereby a given change in a particular input, such as government spending, causes a larger change in an output, such as gross domestic product.

    ‘a tax cut for the wealthy will have a much smaller multiplier effect in the economy than one for the lower economic classes’
    • ‘Subsidizing farmers doesn't have nearly the same multiplier effect on consumption.’
    • ‘During the '90s, macro multiplier effects had a very positive effect on the domestic economy.’
    • ‘Unpredictable multiplier effects still pose a forecasting challenge.’
    • ‘Experts have suggested that there is a nine times market multiplier effect inherent in permanent open market operations.’
    • ‘Manufacturing - and not services - has tremendous economic multiplier effects.’