Economics · Accelerator Principle
The accelerator principle relates investment demand (It) to which of the following relations?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It = a(Yt - Yt-2)
- 2It = a(Yt-1 - Yt)
- 3It = a(Yt - Yt-1)✓
- 4It = aYt
Correct answer
It = a(Yt - Yt-1)
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