The belief that a higher rate of growth in real GDP will lead to higher planned investment spending is known as:

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The belief that a higher rate of growth in real GDP will lead to higher planned investment spending is known as the accelerator principle. This principle suggests that an increase in the demand for goods and services will lead to higher investment spending as firms seek to increase their capacity to produce more goods and services. The accelerator principle is an important component of Keynesian economics, which argues that government policies should aim to stabilize the economy by managing aggregate demand.

The Belief That a Higher Rate of Growth in Real