Investment Multiplier in Economy Formulas

Investment Multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy. And is denoted by K.

Formulas to find Investment Multiplier in Economy

fxInvestment MultiplierGo

List of variables in Economy formulas

fx Marginal Propensity to Consume Go

FAQ

What is the Investment Multiplier?

Investment Multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy.

Can the Investment Multiplier be negative?

{YesorNo}, the Investment Multiplier, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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