In macroeconomic analysis. the ratio of the total increment in equilibrium value of final goods output to me initial increment in autonomous expenditure is called the _________ of the economy.

Correct option is C

Correct Answer: (c) Investment multiplier

Consumption Multiplier:

• This term does not exist as a formal macroeconomic concept. Consumption is a part of the multiplier effect but does not describe the phenomenon itself.

Income Multiplier:

• While the multiplier effect influences income, the correct term for this concept is the

investment multiplier.

• Savings impact the multiplier effect indirectly through the Marginal Propensity to Save (MPS), but the term "savings multiplier" is not used in this context.