Refer to the information above. By accelerator theory, net investment will remain above zero in the long run only so long as
A) expected sales are greater than v* times the capital stock.
B) replacement investment is above zero.
C) expected sales keep rising.
D) expected sales do not fall.
E) actual sales fall below expected sales.
C
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Given the information in the table above, Home's opportunity cost of cloth is
A) 0.5. B) 2.0. C) 6.0. D) 1.5. E) 3.0.
As the marginal propensity to consume (MPC) decreases, the spending multiplier:
a. increases. b. decreases. c. remains constant. d. becomes undefinable.
With regard to GDP, residential property taxes are an example of ____ taxes
a. variable b. sales c. fixed d. disposable
Which of the following is true of efficiency wages? a. It encourages workers to enroll in training programs. b. It creates less worker turnover
c. It reduces the marginal productivity of workers. d. It increases workers' demand for leisure.