The concept of 'Accelerator' in economics relates to:
A. Relationship between change in income and change in investment
B. Relationship between money supply and prices
C. Relationship between interest rate and saving
D. Relationship between tax rate and revenue
Answer: Option A
Solution (By JKSSB Mock Tests)
The accelerator principle states that investment depends on the rate of change of income or output. An increase in demand leads to a magnified increase in investment.
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