The ratio of increase in income to increase in investment is termed as
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Investment Multiplier.
The Investment Multiplier measures how much income increases as a result of an increase in investment.
It is defined as:
Multiplier (K)=ΔY / Δ I , where
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ΔY = Change in income
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ΔI = Change in investment