Answer-Accelerator and multiplier stand for

Accelerator and multiplier both have different meanings. Accelerator measures the change in investment due to change in output. Multiplier measures an initial change in spending to the total change in the activity which will result.

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Question

Accelerator and multiplier stand

for This question obtained (1) Marks:

A The same thing and lead to an increase in output of the economy.

B The same thing and cause an increase in investment and increase in output.

C Different things with the first causing a change in investment due to a change in output and the second causing a change in output due to a change in investment.

D Different things with the first causing a change in output due to a change in investment and the second causing a change in investment due to a change in output.

E None of these

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Accelerator and multiplier stand

Solution