_____________________ is defined as the multiple amount by which income increases as a result of increase in investment expenditure.

Production multiplier

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Investment multiplier

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Income multiplier

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Savings multiplier

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Solution

The correct option is C Investment multiplier
Investment multiplier refers to the number of time by which the increase in output or income exceeds the increase in investment expenditure. It is measured as the ratio between change in income and change in investment and it is denoted as 'k'.

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