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What is the key concept of the multiplier theory?
  • a)
    The relationship between income and investment.
  • b)
    The relationship between consumption and savings.
  • c)
    The relationship between inflation and unemployment.
  • d)
    The relationship between government spending and taxes.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What is the key concept of the multiplier theory?a)The relationship be...
The key concept of the multiplier theory is that an initial increase in investment leads to a larger increase in total income through successive rounds of consumption and spending.
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