________ impact attempts to measure the multiplying effect of successive turnover of the dollars spent in the community

• A. Induced
• B. Direct
• C. Indirect
• D. Multiplier

Answer: (A)

Induced impact is the part of economic impact that captures what happens when the income earned from direct and indirect activities is spent again in the local economy. As money flows from wages and supplier earnings back into households, people spend it on goods and services, which in turn generates more income and more spending in a continuing cycle. That continual round of spending is the multiplying effect of turnover within the community, which is exactly what induced impact measures.

Direct impact refers to the initial spending itself (the first round), while indirect impact looks at the secondary effects on suppliers and the broader supply chain caused by that initial spending. The multiplier is the overall factor describing how much total impact results from a given amount of initial expenditure, not a specific type of impact.