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
Example sentencesExamples
- Experts have suggested that there is a nine times market multiplier effect inherent in permanent open market operations.
- Unpredictable multiplier effects still pose a forecasting challenge.
- Manufacturing - and not services - has tremendous economic multiplier effects.
- 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.