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.
C
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What is a gold standard?
What will be an ideal response?
Suppose the price level increases and real GDP remains the same. Then
A) nominal GDP must decrease. B) nominal GDP must remain unchanged. C) nominal GDP must increase. D) none of the above are true.
The capital and financial account measures ________
A) foreign investment in the United States minus U.S. investment abroad B) capital produced outside of the United States minus capital produced inside the United States C) capital used inside the United States but manufactured outside the United States D) capital used outside the United States but manufactured inside the United States
Money serves as ________
A) a unit of account B) a store of value C) a medium of exchange D) all of the above E) none of the above