Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called:

Options:

Money Multiplier.

GDP Multiplier.

Investment multiplier

Tax Multiplier

Correct Answer:

Investment multiplier

Explanation:

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 expenditure is called the investment multiplier of the economy.