If the economic growth rate INCREASES from 1% to 5%, the simple accelerator hypothesis suggests that
A) investment will continue to rise as output increases.
B) investment will fall as output increases.
C) investment will rise since the rate of change in output increases.
D) None of the above is correct.
C
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When testing the null hypothesis that two regression slopes are zero simultaneously, then you cannot reject the null hypothesis at the 5% level, if the ellipse contains the point
A) (-1.96, 1.96). B) . C) (0,0). D) (1.962, 1.962).
Which of the following will NOT lead to an increase in demand for a normal good?
A. an increase in income B. a decrease in the price of a complement good C. an increase in the number of consumers D. an increase in the price of an input
In macroeconomics, equilibrium is defined as that point at which
A. saving equals consumption. B. planned aggregate expenditure equals aggregate output. C. aggregate output equals consumption minus investment. D. planned aggregate expenditure equals consumption.
A monopolistically competitive firm can minimize its losses by producing where ________ as long as ________.
A. P = ATC; P > MR B. MR = MC; P > AVC C. P = MC; P > ATC D. P = MR; P > AFC