According to the Accelerator Model

question 50

Multiple Choice

According to the accelerator model,

• A)the level of investment spending is proportional to the level of GDP
• B)the change in investment spending is proportional to the change in GDP
• C)the change in investment spending is proportional to the level of GDP
• D)the level of investment spending is proportional to the change in GDP
• E)none of the above

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Definitions:

Price Presentation

The way in which the price of a product or service is explained or displayed to potential buyers.

Price-Value Formula

An equation or principle that reflects the relationship between the price of a product or service and the value it provides to the customer, aiming to establish what is considered fair or competitive.

Buyer's Thinking

The thought process and considerations of potential customers as they decide whether or not to purchase a product or service.