The "multiplier effect" of the gold rush was most clearly evident in the early development of

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The multiplier effect refers to the stimulation of economic activity in multiple sectors as a result of a sudden injection of wealth into an economy. In the case of the gold rush, the sudden influx of wealth led to increased demand for goods and services, which in turn stimulated manufacturing and other industries. While agriculture and cattle ranching were also important in the early development of the American West, the multiplier effect was most clearly evident in the growth of manufacturing. Banking also played a role in financing and supporting the growth of these industries, but it was not directly impacted by the gold rush in the same way as manufacturing.

The "Multiplier Effect" of the Gold Rush Was Most Clearly