How could the decision by the Washington Commanders to build a new complex create a positive multiplier effect in the capital area?
Building a new complex could create a multiplier effect in the capital area if ______________.
A multiplier effect occurs when a change in autonomous expenditure is magnified or multiplied. To create a multiplier effect in the capital area, what has to happen to expenditure in the capital area? How will this occur?
Suppose that a construction worker who earns $60,000 a year in income while building the complex spends $45,000 in local businesses. The local businesses then spend $33,750 on purchasing more local goods to replace their inventories. The original expenditure was $60,000, but total expenditure is $138,750. There is a multiplier effect.
