According to the accelerator model of inventory investment,if firms desire to hold 25 percent of output as inventories,and output increases by $1 trillion,then inventory investment will increase by:
A) $0.25 trillion.
B) $1 trillion.
C) $1.25 trillion.
D) $4 trillion.
Correct Answer:
Verified
Q45: Residential investment spending includes spending on:
A) new
Q54: Inventory investment is the component of aggregate
Q57: The inventories as a factor of production
Q58: During a banking crisis and credit crunch,
Q62: The opportunity cost of holding inventories is
Q63: In the accelerator model of inventory investment,when
Q63: The stock-out avoidance motive for holding inventories
Q66: Inventory investment, at least in theory, should:
A)
Q67: When banks make rules on maximum permissible
Q69: According to the accelerator model of inventory
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents