In the Accelerator Theory the

question 111

Multiple Choice

In the accelerator theory the

• A)smaller the desired capital-output ratio the larger will be net investment.
• B)smaller the desired capital-output ratio the larger will be replacement investment.
• C)larger the desired capital-output ratio the larger will be net investment.
• D)larger the desired capital-output ratio the smaller will be replacement investment.

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Definitions:

Market Price

The rate in the market at which an asset or service can be bought or sold today.

Debt-equity Ratio

A financial metric assessing a corporation's leverage, obtained by dividing all liabilities by the equity held by shareholders.

Semi-annually

Occurring or calculated twice a year, typically in the context of interest payments or other financial evaluations.

Market Value

The price at which trading of a service or asset is currently occurring in the market.