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.
A
Economics
You might also like to view...
Most economists believe that the source of European high unemployment in the past two decades is
A) labor market institutions. B) tight monetary policy. C) tight fiscal policy. D) financial crisis.
Economics
Suppose a local bookstore notices that a 2 percent increase in book prices leads to a 2 percent decrease in the number of books sold. Which of the following is true?
a. Demand for books is price elastic. b. The store's sales revenue did not change. c. Demand for books is price inelastic. d. Demand for books is perfectly inelastic. e. The bookstore could increase revenue by further lowering prices.
Economics