Refer to the information above. By accelerator theory, net investment will remain above zero in the long run only so long as

A) expected sales are greater than v* times the capital stock.
B) replacement investment is above zero.
C) expected sales keep rising.
D) expected sales do not fall.
E) actual sales fall below expected sales.

C

Economics

You might also like to view...

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb, where QD is the quantity of pizza demanded, P is the price of pizza, and Pb is the price of a burrito

What is the relationship between burritos and pizza, from the point of view of consumers? A) They are independent. B) They are complements. C) They are substitutes. D) Not enough information to answer the question.

Economics

When the slope of the total production curve begins to flatten:

A. additional inputs adds less to total production than the inputs added before. B. diminishing marginal product must be occurring. C. the marginal product must be decreasing. D. All of these are true.

Economics