By the accelerator hypothesis,if a firm's actual sales jump in one period to a higher maintained level,that firm's net investment

Question

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The accelerator hypothesis suggests that if a firm's sales increase suddenly and maintain at a higher level, the firm's net investment will initially jump to increase capacity but then fall back to zero as no further increase in capacity is needed once the new level of sales is maintained.

By the Accelerator Hypothesis,if a Firm's Actual Sales Jump in One