According to the accelerator theory of investment, an increase in the expected future growth rate of real GDP will cause:

Name: According to the accelerator theory of investment, an increase in the expected future growth rate of real GDP will cause:
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The accelerator theory of investment suggests that an increase in the expected future growth rate of real GDP will lead to an increase in current investment spending, as firms anticipate higher future demand and invest in capital to meet that demand.

According to the Accelerator Theory of Investment, an Increase in the Expected