Question

Explain the operation of the accelerator

Answer 1

Answer:

The accelerator theory is an economic postulation whereby investment expenditure increases when either demand or income increases. ... The accelerator theory posits that companies typically choose to increase production, thereby increasing profits, to meet their fixed capital to output ratio.

Explanation:

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Answer 2

Answer:

The accelerator theory is an economic postulation whereby investment expenditure increases when either demand or income increases. ... The accelerator theory posits that companies typically choose to increase production, thereby increasing profits, to meet their fixed capital to output ratio

Explanation:

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