2006-07-15 23:18:53 · 4 answers · asked by KP 1 in Politics & Government ➔ Government
Yes, developing the east end of London for the Olympics will have this effect. To some extent, isn't it merely a re-focusing of economic activity from other areas. Accountants would call it invesment. You could call it the 'gravitation effect'.
2006-07-20 06:34:37 · answer #1 · answered by Veritas 7 · 0⤊ 0⤋
In economics, a multiplier effect occurs when an injection of funds causes a greater increase in economic activity. This occurs as the funds are used more than once since not everything is saved. For example I get $100, I spend $80 on food, then the restaurant owner saves $16 and spends $64... In these 2 rounds, the economic activity has risen by 80+64=144 from a $100 injection.
The same idea can be applied in other fields too. As AndyB pointed out, it can occur when one establishment or on project revitalises a whole area.
The basic idea is a multiplication of the effects (here positive) above and beyond the first direct effect.
2006-07-16 14:30:33 · answer #2 · answered by ekonomix 5 · 0⤊ 0⤋
I don't know if this is any help, but from the articles i have read it appears to be one of these buzz phrases that crops up just to confound everyone.
One example i could use is negative equity. When one part of a city/neighbourhood is rundown through neglect and isn't halted, then it will gradually creep to other areas. Imagine this in reverse.
an area that goes through a mini renaissance may find that this will benefit other areas via new housing and businesses. it will have a positive ripple effect on the community.
it's an irritating phrase.
2006-07-15 23:53:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Do you want to know one of the factors typical Law of attractionproduct does not work for lots of people?Consider it like a diet. If you want drop weight and you strive to lose it
2016-05-17 18:15:03 · answer #4 · answered by ? 2 · 0⤊ 0⤋