MCQOPTIONS
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| 1. |
The principle of accelerator explains the process by which |
| A. | An increase (or decrease) in the demand for consumption goods leads to an increase (or decrease) in the investment on capital goods |
| B. | The ratio between induced investment and an initial change in consumption expenditure |
| C. | An increase (or decrease) in the investment on capital goods leads to an increase (or decrease) in the demand for consumption goods |
| D. | None of the above |
| Answer» B. The ratio between induced investment and an initial change in consumption expenditure | |