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| What do you mean by forward action of multiplier? |
with increase in investment, multiplier increases income many more times with increase in investment, multiplier decreases income many more times with decrease in investment, multiplier decreases income many more times with decrease in investment, multiplier increases income many more times |
| with increase in investment, multiplier increases income many more times |
| Multiplier shows the ratio of change in income due to initial change in total investment expenditure. It explains the number of times income increases/decreases due to increase/decrease in investment. Multiplier and investment are directly related. Thus, with increase in investment, multiplier increases income many more times. |
