By the accelerator hypothesis,if a firm's actual sales jump in one period to a higher maintained level,that firm's replacement investment
A) also jumps in one period to a higher maintained level.
B) gradually drifts upward to a higher maintained level.
C) jumps upward and then falls back to zero.
D) jumps upward and then falls back part of the way.
Correct Answer:
Verified
Q16: Aggregate private spending is stable according to
Q17: The amount of gross investment in the
Q18: Figure 16-2 Q19: Figure 16-2 Q20: The simple accelerator theory suggests that investment Q22: The "accelerator hypothesis" of investment states that Q23: If the government allows businesses to accelerate Q24: In the simple accelerator theory an increase Q25: The minimum level of net investment necessary Q26: Which of the following types of expenditure
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