Q.

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» A. if an increase in the growth of output is expected, investment will increase.
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