MCQOPTIONS
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| 1. |
The accelerator principle states: |
| A. | if an increase in the growth of output is expected, investment will increase. |
| B. | if an increase in investment is expected, output will increase. |
| C. | if an increase in the growth of investment is expected, output will increase. |
| D. | small swings in investment are associated with large swings of output. |
| Answer» B. if an increase in investment is expected, output will increase. | |