The investment multiplier is defined as the ratio of:

CA Foundation · Business Economics · PYQS · January 2025
The investment multiplier is defined as the ratio of:
(A) A. change in investment due to change in saving
(B) B. change in demand due to change in investment
(C) C. change in consumption due to change in investment
(D) D. change in national income due to change in investment

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. change in national income due to change in investment

Topics: Theory of Demand and Supply, Determination of National Income

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic