multiplier effect
/ˈmʌltɪplaɪər ɪˌfekt/
the amplified impact of spending through successive rounds
multiplier effect in a sentence
“Government spending has a multiplier effect on GDP.”
Origin of multiplier effect
From multiply (Latin multiplicare) + effect
Related Words
stagflation
stagnant growth combined with high inflation
trade deficit
when imports exceed exports
GDP
gross domestic product; the total value of goods and services produced
inflation
a general increase in prices and fall in purchasing power
deflation
a general decrease in prices
recession
a significant decline in economic activity lasting months