The __________ is a regulator of financial markets?

Which of the following is a primary implication of the accelerator theory of investment?

A) Net investment occurs when the desired and actual capital stocks are equal. B) In order for gross investment to remain constant, income must remain constant. C) Rising rather than high levels of output are necessary to maintain a high level of net investment. D) B and C are both correct.

The consumption function becomes steeper as the income tax rate decreases because a decrease in the income tax rate: a. increases the disposable income available to the consumer. b. decreases the disposable income available to the consumer. c. increases the marginal propensity to save

d. increases the wealth of the consumer.