The ________ is an economic principle that recognizes that every dollar expended by an airport patron in the community is further recycled or channelling throughout the community to generate additional income or revenue

• A. Multiplier Effect
• B. Circular Flow
• C. Velocity of Money
• D. Demand-Pull

Answer: (A)

The multiplier effect is the economic principle at play here. When an airport patron spends money locally, that cash becomes income for local businesses and workers. Those recipients then spend a portion of that income on more local goods and services, and the cycle continues, generating additional income and revenue beyond the initial expenditure. The overall impact grows because each round of spending adds to total economic activity, though the size depends on how much of income is actually spent versus saved, taxed, or used for imports.

This fits best because the statement centers on money being recycled through the community to create more income, not just how money moves in an economy in general (circular flow), how quickly money changes hands (velocity), or inflation driven by demand (demand-pull).