The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous investment expenditure is called the _________ of the economy. |
Consumption function Saving function Investment multiplier Aggregate demand |
Investment multiplier |
The correct answer is option (3) : Investment multiplier The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous investment expenditure is called the investment multiplier of the economy. |