Q.

The value of investment multiplier relates to -

A. change in income due to change in autonomous investment.
B. change in autonomous investment due to change in income.
C. change in income due to change in consumption.
D. change in the income due to change in induced investment.
Answer» B. change in autonomous investment due to change in income.
Explanation: 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. The investment multiplier tries to determine the financial impact for a public or private project.
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Economics (GK)

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