Investment Multiplier is measured as a _________________.a.ratio between income and investment.b.ratio between investment and savingsc.ratio between consumption and investmentd.ratio between consumption and income
Question
Investment Multiplier is measured as a _________________.a.ratio between income and investment.b.ratio between investment and savingsc.ratio between consumption and investmentd.ratio between consumption and income
Solution
The Investment Multiplier is measured as a ratio between income and investment.
Similar Questions
Investment Multiplier is measured as a
The 'multiplier effect' is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures. a. autonomous; investment; induced b. induced; consumption; autonomous c. autonomous; consumption; induced d. induced; investment; autonomous
In an economy with no taxation and no external trade, the size of the multiplier depends on:Select one correct answerGroup of answer choicesThe marginal propensity to consume.The current level of aggregate demand.Investment.Autonomous consumption.
If Government (or Investment) spending is increased by $10 with MPC = 0.75 , then the multiplier will be _________. (Assume that no other component in AD depends on income, just the consumption function.)
The higher is the MPS, _____________.a.Lower is the multiplier.b.Higher is the investment spendingc.Higher is the equilibrium income.d.Higher is the multiplier
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