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Author Question: What is the accelerator theory of investment spending? What will be an ideal ... (Read 39 times)

EAugust

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on: Jun 30, 2018
What is the accelerator theory of investment spending?
 
  What will be an ideal response?

Question 2

Assuming all excess reserves are loaned out, if the reserve ratio is 3.33 percent, the money multiplier will be equal to
 
  A) 0.67. B) 3.33. C) 6.67. D) 30.


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SomethingSomething

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The accelerator theory of investment spending says that current investment spending is positively related to the expected real growth of GDP.

Answer to Question 2

D


EAugust

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Reply 2 on: Jun 30, 2018
Excellent

mcarey591

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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