A small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product. This is known as__________
Fill in the blanks with correct word.
ANSWER: the multiplier effect
This phenomenon is known as the multiplier effect or the accelerator principle. The demand for business products tends to be less stable than the demand for consumer products. A small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.
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