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The value of investment multiplier relates to
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- change in income due to change in autonomous investment.
- change in autonomous investment due to change in income.
- change in income due to change in consumption.
- change in the income due to change in induced investment.
- change in income due to change in autonomous investment.
Correct Option: B
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.
