The accelerator assumes?

729EconomicsMedium

AThe multiplier is constant

BThere is a constant relationship between net investment and the rate of change of output

CThe marginal propensity to consume is constant

DThe economy is at full employment

Correct answer

B. There is a constant relationship between net investment and the rate of change of output

Explanation

The correct answer is There is a constant relationship between net investment and the rate of change of output.

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