The national restaurant association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the united states, with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. this indicates that the spending multiplier for the restaurant industry is equal to
The spending multiplier refers to how much economic output increases with an increase in spending. A general formula for the multiplier is1/(MPS). In the specific case with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy, the spending multiplier for the restaurant industry is equal to 2.05.
