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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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