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    Add as Friendinvestment decision

    by: benyamin

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    1 : INVESTMENT DECISIONS Prof T Prabhakar Reddy
    2 : The Multiplier The concept of multiplier plays an important role in the income determination process. This determines how or more specifically by what amount income increases as the result of an increase in the level of investment.
    3 : The multiplier or the investment income multiplier as it is sometimes described, is in short, the ratio of Y to Investment. The ratio is always greater than investment. hence, the use of the expression multiplier. The multiplier shows the impact of an increase in investment on income through the savings function and therefore, through the consumption function.

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