Investment multiplier is - (A) Number of times equilibrium aggregate demand increases as a result of an increase in autonomous investment (B) Number…
CA Foundation · Business Economics · MTP · June 2024
Investment multiplier is - (A) Number of times equilibrium aggregate demand increases as a result of an increase in autonomous investment (B) Number of time equilibrium aggregate income increases as a result of an increase in autonomous investment (C) k = ΔΙ/ Y (D) B and C both
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. Number of time equilibrium aggregate income increases as a result of an increase in autonomous investment
Topics: Theory of Demand and Supply
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