Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

_____ is the ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure of the economy.

Options:

Marginal Propensity to Consume.

Investment multiplier.

Consumption Multiplier.

Marginal Propensity to Save.

Correct Answer:

Investment multiplier.

Explanation:

The correct answer is Option (2) → Investment multiplier.

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called the investment multiplier of the economy.