The accelerator model states that if income growth slows down, net investment will
A) decline
B) increase but at a decreasing rate
C) be zero since only replacement investment will take place
D) be equal to the level of gross investment
E) be negative
Correct Answer:
Verified
Q30: The imposition of a temporary tax credit
Q31: According to the accelerator model,
A)the level of
Q32: If all changes in inventories were intended,
A)there
Q33: From the accelerator model we learn that
A)the
Q34: The component of real investment that experiences
Q36: The q-theory of investment states that firms
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Q38: Credit rationing implies that
A)some firms cannot borrow
Q39: The notion of permanent output is important
Q40: According to the accelerator model, as GDP
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