Question

Income multipliers:

a. Are useful as a preliminary analysis tool to weed out obviously unacceptable investment opportunities.
b. Are adequate as the sole indication of a property's investment worth.
c. Relate the property's price or value to after tax cash flows
d. None of the above.

Answer 1

option a

Step-by-step explanation:

Throughout the macroeconomic environment, the influence of a income multiplier applies to the assumption that capital can be re-used and that a dollar will potentially produce more than one dollar for economic growth. Multipliers of profits in real estate transactions are assessment devices.

Some of the core theories of Keynesian is really the idea of a income amplifier. This relates to the idea that perhaps a dollar invested becomes additional income.