Question
Accelerator theory of investment is the ratio of:
Solution
Accelerator theory of investment is the ratio of change in investment to change in income. It is an economic postulation whereby investment expenditure increases when either demand or income increases. The theory also suggests that when there is excess demand, companies can either decrease demand by raising prices or increase investment to meet the level of demand.
“Adhai-Din-ka-Jhopara’ was built by
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