The accelerator theory states that
A) the larger this period's desired capital stock the smaller will be this period's net investment.
B) the larger the previous period's desired capital stock the larger will be this period's net investment.
C) the larger the previous period's desired capital stock the smaller will be this period's net investment.
D) this period's net investment is unrelated to this period's desired capital stock.
C
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Indicate whether the statement is true or false