In the Simple Accelerator Theory an

question 20

Multiple Choice

In the simple accelerator theory an

• A)increase in actual sales will always lead to an increase in investment.
• B)increase in actual output will not lead to an increase in expected sales.
• C)increase in actual sales will lead to an increase in replacement investment.
• D)increase in the size of the increase in actual sales will lead to an increase in next period's net investment.

---

Definitions:

Reacquired

Refers to previously issued stocks or securities that have been bought back by the issuing company.

Treasury Stock

Shares that were issued and later repurchased by the issuing company, reducing the amount of outstanding stock.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and receive dividends.

Paid-In Capital

The total amount of capital that shareholders have directly contributed to a company in exchange for shares.