The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous investment expenditure is known as?

Investment Multiplier.

The correct answer is Option (1) → Investment Multiplier.

The Investment Multiplier refers to the ratio of the total increase in equilibrium output (income) to the initial increase in autonomous investment. It shows how much the national income increases as a result of an initial increase in investment.

Investment Multiplier (k)=ΔY/ΔI

Where:

• $\Delta Y$ = Change in income/output

• $\Delta I$ = Change in investment

This concept is central to Keynesian economics, explaining how an initial boost in investment can lead to a multiplier effect on the overall economy.