Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

According to the accelerator theory, what would make investment in an economy fall below the level of the previous year?

  • Aa lower marginal propensity to consume than in the previous year
  • Ba lower marginal propensity to save than in the previous year
  • Ca smaller fall in national income than occurred in the previous year
  • Da smaller rise in national income than occurred in the previous year

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