Economics · Super Multiplier Concept
The 'Super Multiplier' concept, which combines the spending multiplier with the investment accelerator, implies that a sustained rise in autonomous expenditure leads to a total change in national income that is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Equal to the balanced budget multiplier
- 2Smaller than the simple multiplier effect due to leakages in induced investment
- 3Greater than the simple multiplier effect alone, because induced investment amplifies income further✓
- 4Equal to the simple Keynesian multiplier effect alone
Correct answer
Greater than the simple multiplier effect alone, because induced investment amplifies income further
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