What does the accelerator principles state?
...What does the accelerator principles state?
Consumption is a function of the rate of change of income
Income is a function of the rate of change of investment
Investment is a function of the rate of change of income
Investment is a function of the rate of interest
Correct answer is C
Investment depends on the rate of change in income and that a change in income will cause a greater proportionate change in investment.
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