Explain Investment Multiplier.
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6
Answer:
The term investment multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy.
Explanation:
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Answer:
Investment multiplier is the ratio of change in income and change in investment .
K = ∆ Y / ∆ I
Where
K = multiplier
∆Y = change in income
∆ I = change in investment
Explanation:
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