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Define Multiplier. - Economics

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प्रश्न

Define Multiplier.

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उत्तर

  • The multiplier is defined as the ratio of the change in national income to the change in investment.
  • If AI stands for increase in investment and AY stands for resultant increase in income, the multiplier K =AY/AI.
  • Since AY results from AI, the multiplier is called investment multiplier.
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Multiplier
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अध्याय 4: Consumption and Investment Functions - Model Questions [पृष्ठ ७४]

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सामाचीर कलवी Economics [English] Class 12 TN Board
अध्याय 4 Consumption and Investment Functions
Model Questions | Q 28. | पृष्ठ ७४
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