multiplier

multiplier definition - business

multiplier

  1. The effect of a change in investment spending by business or government on a country's income. For example, a $1 billion increase in investment spending might cause national income to increase by $3 billion. The size of the multiplier depends on the proportion of income that people spend on consumption.
  2. See gross rent multiplier.
  3. See American currency quotation.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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