Let Net Investment Based on the Accelerator Principle Predict That

question 37

Multiple Choice

Let net investment based on the accelerator principle predict that net investment will equal twice the change in GDP in a given year. If GDP is expected to climb from $2 to $2.2 trillion with an initial capital stock of $3 trillion facing an annual rate of depreciation of 10 percent, then gross investment should be expected to be somewhere in the neighborhood of

• A) $300 billion.
• B) $400 billion.
• C) $520 billion.
• D) $620 billion.
• E) $700 billion.

---

Definitions:

Marginalization

Refers to the process by which certain groups are pushed to the edge of society by denying them access to resources and opportunities, leading to their decreased agency and participation in social, economic, and political life.

Action Plan

A detailed strategy outlining steps or measures needed to achieve a specific goal or solve a problem.

Project Manager

A professional responsible for planning, executing, and finalizing projects according to deadlines and within budget.

Deviations

Instances of diverging from a standard, norm, or expected pattern.