Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question
Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsDetermination of Income and Employment1 Mark
Question
Define investment multiplier.
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Answer
Investment multiplier is defined as the ratio of change in income to change in investment.
Symbolically, Multiplier (k) $=\frac{\Delta\text{Y}}{\Delta\text{I}}.$
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