Macroeconomic Theory: Investment. A different approach to investment relative to the profit-maximizing model is that of the accelerator model. Accelerator Theory of investment. Get the full title to continue reading from where you left off, or restart the preview. DEFINITION OF 'ACCELERATOR THEORY' An economic theory that suggests that as demand or income increases in an economy, so does the inv. Accelerator Theory of investment.The accelerator is the numerical value of the relation. Accelerator theory of Investment. Now discuss the more important theory to our model is the multiplier. A look at these two theories that attempt to explain what factors. MEC and Accelerator investment theories. What is the 'Accelerator Theory' The accelerator theory is an economic postulation that investments made by companies increase when either demand or income increases.
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December 2016
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