With reference to the Economic Survey 2022-23, consider the following statements regarding the Capex Multiplier:

1. Capex multiplier estimated for the country, the economic output of the country is set to increase by at least four times the amount of Capex

2. The multiplier effect is the proportional amount of increase or decrease in final income that results from an injection or withdrawal of spending respectively.

Which of the above statements is/are correct?

1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2

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