Economics · Investment Function
An economy experiences a constant rate of increase in aggregate income. According to the accelerator principle, the level of investment will:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Gradually fall to zero before full employment
- 2Remain constant after an initial rise✓
- 3Increase at a constant rate
- 4Continuously increase at an increasing rate
Correct answer
Remain constant after an initial rise
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