Explain the following:

a. Investment multiplier
b. Balance of Trade
c. Hot money
d. Gross Domestic Product and Gross National Product

(a) Investment multiplier:- 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. It is rooted in the economic theories of John Maynard Keynes.

The investment multiplier tries to determine the economic impact of public or private investment. For instance, extra government spending on roads can increase the income of construction works, as well as the income of materials suppliers. These people may spend the extra income in the retail, consumer goods, or service industries, boosting the income of the workers in those sectors.

(b) Balance of trade:- The balance of trade, commercial balance, or net _____ _________ _____ ___ ___.
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