In the simple accelerator theory an increase in expected sales will

Question

Quizplus · Accepted Answer

The simple accelerator theory states that the level of net investment is directly proportional to the expected increase in sales. However, this does not necessarily mean that an increase in expected sales will immediately lead to an increase in net investment. Other factors such as the availability of capital, production capacity, and technological innovations may also play a role in determining the level of net investment. Therefore, option B is the correct answer.

In the Simple Accelerator Theory an Increase in Expected Sales