The positive feedback from aggregate demand to investment is called
A)the investment multiplier.
B)the stock-market effect.
C)the investment accelerator.
D)the crowding-in multiplier.

Question

Quizplus · Accepted Answer

The positive feedback from aggregate demand to investment is called the investment accelerator. This refers to the idea that an increase in demand for goods and services can lead to higher levels of investment from businesses in order to meet the increased demand. As such, the investment accelerator can help to reinforce and amplify the effects of increases in aggregate demand.

The Positive Feedback from Aggregate Demand to Investment Is Called