Multiplier Effect

Multiplier Effect

A measure of the change in a country's money supply that occurs as the result of banks' ability to lend. The multiplier effect is dependent on banks' required reserves, or the amount of money in deposits they are legally required to keep in-house. If a bank has a low reserve requirement, it is able to lend more of its deposit money, which in turn increases the money supply. This indicates a high multiplier effect. On the other hand, a high reserve requirement leads to a low multiplier effect. See also: M1, M2.
References in periodicals archive ?
This expansion in investment would have multiplier effect on increasing job opportunities for skilled media personnel and journalists, expanding work of media production houses, advertising agencies and proliferation of the performing arts.
This bodes well as the front-loading of capital spending enables the multiplier effect to set in early and boost economic growth during the year," observers said.
a) The shipbuilding industry has the same impact as infrastructure sector due to higher multiplier effect on investment and turnover (11.
Speaking at the annual general meeting of Team Namibia in the capital on Wednesday, the premier said manufacturing growth is instrumental for the country's economic growth due to the high multiplier effect that it has.
This drove the creation of an additional 111,000 indirect jobs during the same period, given an employment multiplier effect of three.
Previous analysts assumed that this period represented a fair test of the multiplier effect, because the unemployment rate was 9.
Delta's Atlantic region managing director said: "The new flight presents a key opportunity in terms of inward investment for Edinburgh through business and tourism"There is a natural multiplier effect of economic activity from a new flight which affords a positive return such as job creation.
And the figures do not include the economic multiplier effect of the convention on the city's private sector.
4 trillion a year, manufacturing represents some 13 percent of gross domestic product, and it brings with it a powerful multiplier effect.
Quenching of superoxide can have a multiplier effect in the prevention of the other radicals as well.
Jean-Louis is expecting a multiplier effect will occur, noting smaller companies who stand to benefit from ORION will provide cash, either through investments or contributions, discounts, or in-kind contributions throughout the three-year implementation period, raising the price tag to $78 million.