Economics · Keynesian Investment Multiplier
In Keynesian theory, an initial increase in autonomous investment leads to a more-than-proportionate, multiplied increase in final national income due to the:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Accelerator effect
- 2Wage-price flexibility framework
- 3Multiplier effect✓
- 4Liquidity trap phenomenon
Correct answer
Multiplier effect
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