Question 15
[Maximum number: 1]
According to the accelerator theory, what would cause investment in an economy to be lower than in the previous year?
A
a lower marginal propensity to consume than in the previous year
B
a lower marginal propensity to save than in the previous year
C
a smaller fall in national income than occurred in the previous year
D
a smaller rise in national income than occurred in the previous year