The term 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.Click to see full answer. Also know, what is investment multiplier and its working?Multiplier is the ratio of the final change in income to the initial change in investment. In other words, it is the ratio expressing the quantitative relationship between the final increase in national income and the increase in investment which induces the rise in income.Beside above, how the value of investment multiplier is determined? The value of the multiplier is determined by the marginal propensity to consume. The higher the marginal propensity to consume, the higher is the value of the multiplier, and vice versa. Simply so, what is meant by multiplier in economics? In economics, a multiplier broadly refers to an economic factor that, when increased or changed, causes increases or changes in many other related economic variables. In terms of gross domestic product, the multiplier effect causes gains in total output to be greater than the change in spending that caused it.What is investment multiplier Class 12?Investment multiplier shows a relationship between initial increment in investment and the resulting increment in national income. It is a measure of change in national income caused by change in investment. Thus, it explains the relationship between increase in investment and the resultant increase in income.