1 multiplier effect | Definition of multiplier effect

multiplier effect

noun

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)

First Known Use of multiplier effect

1937, in the meaning defined above

Keep scrolling for more