multiplier effect


Definition of multiplier effect

: the effect of a relatively minor factor in precipitating a great change especially : the effect of a relatively small change in one economic factor (such as rate of saving or level of consumer credit) in inducing a disproportionate increase or decrease in another (such as gross national product)

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First Known Use of multiplier effect

1937, in the meaning defined above

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The first known use of multiplier effect was in 1937

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Cite this Entry

“Multiplier effect.” Dictionary, Merriam-Webster, Accessed 22 Sep. 2020.

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