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Income Method

The number of...

Question

The number of times income increases because of increase in investment is called multiplier.

A

True

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B

False

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Solution

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

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