The Idea That Business Firms Attempt to Maintain a Fixed

question 73

Multiple Choice

The idea that business firms attempt to maintain a fixed relation between their stock of capital and their expected sales is the basis for the

• A)accelerator hypothesis of net investment.
• B)permanent-income hypothesis.
• C)life cycle hypothesis.
• D)adaptive expectations approach.

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Definitions:

Interest

A feeling of curiosity or concern about something, which can drive attention or engagement towards it.

Expectations

Beliefs or forecasts about future events or behaviors that can influence individuals' perceptions and actions.

Modes of Interacting

The varied ways in which individuals engage, communicate, and connect with each other in society.

Communicates

The act of conveying information or expressing thoughts and feelings through speech, writing, or other mediums.