The investment multiplier is: negatively related to the MPS. positively related to the MPC. larger than 1 if the MPS is less than 1. the amount by which national income changes for a change in planned investment spending. All the above.

The investment multiplier is: negatively related to the MPS. positively related to the MPC. larger than 1 if the MPS is less than 1. the amount by which national income changes for a change in planned investment spending. All the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The investment multiplier is:

		negatively related to the MPS.
		positively related to the MPC.
		larger than 1 if the MPS is less than 1.
		the amount by which national income changes for a change in planned investment spending.
		All the above.

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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