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Investment Multiplier is the ratio of change in ______ and ______ -

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Question

Investment Multiplier is the ratio of change in ______ and ______

Options

  • Income, Investment

  • Savings, Income

  • Investment, Consumption

  • Savings, Investment

MCQ
Fill in the Blanks

Solution

Investment Multiplier is the ratio of change in Income and Investment.

Explanation:

The concept of an investment multiplier refers to the idea that any increase in public or private investment spending has a greater-than-proportionately positive impact on aggregate income and the overall economy.

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Aggregate Demand and Its Components - Investment
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