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What does the accelerator principles state?

What does the accelerator principles state?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Consumption is a function of the rate of change of income
  • B Income is a function of the rate of change of investment
  • C Investment is a function of the rate of change of income
  • D Investment is a function of the rate of interest
Correct Answer: Option C
Explanation:
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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