multiplier effect

noun

: 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)

Word History

First Known Use

1937, in the meaning defined above

Time Traveler

The first known use of multiplier effect was in 1937

See more words from the same year

Cite this Entry

Style

“Multiplier effect.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/multiplier%20effect. Accessed 23 Nov. 2024.

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