Economics · Macroeconomics
Arrange the following in the correct logical sequence of the investment multiplier process: (a) Increase in autonomous investment (b) Rise in national income (c) Increase in consumption expenditure (d) Further rise in aggregate demand
- 1(c) → (a) → (b) → (d)
- 2(a) → (c) → (b) → (d)
- 3(b) → (a) → (c) → (d)
- 4(a) → (b) → (c) → (d)✓
Correct answer
(a) → (b) → (c) → (d)
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