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Consumption and Investment Functions — Economics STD 12 — Question

Tamilnadu BoardEnglish MediumSTD 12EconomicsConsumption and Investment Functions3 Marks
Question
Explain the uses of multiplier?
✓

Answer

Uses of multiplier
  1. Multiplier highlights the importance of investment in income and employment theory
  2. The process throws light on the different stages of trade cycle.
  3. It also helps in bringing the equality between S and I.
  4. It helps in formulating Government policies.
  5. It helps to reduce unemployment and achieve full employment.

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