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what is investment multiplier

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what is investment multiplier

Posted by Rajdeep Walia 4 years, 10 months ago

CBSE > Class 10 > Other Subjects

1 answers

Yogita Ingle 4 years, 10 months ago

Investment Multiplier refers to increase in national income as i multiple of a given increase in Investment. Its value is determined by MPC.
The value equals: Multiplier = 1/1-MPC or 1/MPS

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