Which of the following is a primary implication of the accelerator theory of investment?
A) net investment occurs when the desired and actual capital stocks are equal
B) in order for gross investment to remain constant, income must remain constant
C) rising rather than high levels of output are necessary to maintain a high level of net investment
D) B and C are both correct.
Correct Answer:
Verified
Q1: Figure 16-2 Q4: Figure 16-2 Q7: Residential investment did not decline in the Q7: Which of the following policies would reduce Q16: Aggregate private spending is stable according to Q17: The amount of gross investment in the Q23: If the government allows businesses to accelerate Q24: In the simple accelerator theory an increase Q39: If the government allows business firms an Q40: In the simple accelerator theory an
A)increase in
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