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प्रश्न
Define multiplier.
Give atleast two definitions of multiplier.
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उत्तर १
- The multiplier is defined as the ratio of the change in national income to the change in investment.
- If AI stands for increase in investment and AY stands for resultant increase in income, the multiplier K = `"AY"/"AI"`.
- Since AY results from AI, the multiplier is called investment multiplier.
उत्तर २
According to Keynes, “Investment multiplier tells us that when there is an increment in aggregate investment, income will increase by an amount that is K times the increment of investment.”
According to Prof. Dillard, “Investment multiplier is the ratio of increase in income to a given increase in investment.”
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
The multiplier tells us how much _______changes after a shift in _____.
The multiplier is calculated as______.
It the MPC is 0.5, the multiplier is _________.
In an open economy import _________ the value of the multiplier.
The term super multiplier was first used by ______.
Mention the differences between accelerator and multiplier effect.
State the concept of the super multiplier.
Specify the limitations of the multiplier.
Illustrate the working of the multiplier.
