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.

---

Definitions:

Licensed Practitioner

A professional who has been officially allowed to provide certain services or conduct specific activities, typically in healthcare, after meeting the required qualifications.

Diagnosis

The identification of a disease or condition by its signs, symptoms, and medical history, often confirmed with tests.

Unlikely Explanation

A rationale or reasoning that appears improbable or does not fit the evidence or circumstances.

Measurable Data

Information that can be quantified or expressed numerically, allowing for analysis and comparison.