The number of dollars of investment required to produce an extra dollar of goods or services is called the

Question

Quizplus · Accepted Answer

The capital-output ratio measures the amount of investment required to produce an extra dollar of output, so the correct answer is D. The multiplier refers to the effect of an initial change in spending on overall economic activity. The rate of innovation measures the rate of change in technology or methods of production. The marginal efficiency of investment refers to the expected rate of return on an investment. The rate of return measures the profit earned on an investment over a specific period of time.

The Number of Dollars of Investment Required to Produce an Extra