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What is the key difference between the multiplier and the accelerator?
  • a)
    Multiplier depends on changes in consumption, while the accelerator depends on changes in investment.
  • b)
    Multiplier depends on changes in investment, while the accelerator depends on changes in consumption.
  • c)
    Multiplier is dependent on psychological factors, while the accelerator is dependent on technological factors.
  • d)
    Multiplier measures the effect of growth in investment on consumption, while the accelerator measures the effect of growth in consumption on investment.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the key difference between the multiplier and the accelerator?...
The multiplier shows the effect of changes in investment on income and employment, while the accelerator shows the effect of changes in consumption on investment. Additionally, the multiplier depends on psychological factors like the propensity to consume, while the accelerator depends on the durability of machines.
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What is the key difference between the multiplier and the accelerator?a)Multiplier depends on changes in consumption, while the accelerator depends on changes in investment.b)Multiplier depends on changes in investment, while the accelerator depends on changes in consumption.c)Multiplier is dependent on psychological factors, while the accelerator is dependent on technological factors.d)Multiplier measures the effect of growth in investment on consumption, while the accelerator measures the effect of growth in consumption on investment.Correct answer is option 'A'. Can you explain this answer?
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What is the key difference between the multiplier and the accelerator?a)Multiplier depends on changes in consumption, while the accelerator depends on changes in investment.b)Multiplier depends on changes in investment, while the accelerator depends on changes in consumption.c)Multiplier is dependent on psychological factors, while the accelerator is dependent on technological factors.d)Multiplier measures the effect of growth in investment on consumption, while the accelerator measures the effect of growth in consumption on investment.Correct answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the key difference between the multiplier and the accelerator?a)Multiplier depends on changes in consumption, while the accelerator depends on changes in investment.b)Multiplier depends on changes in investment, while the accelerator depends on changes in consumption.c)Multiplier is dependent on psychological factors, while the accelerator is dependent on technological factors.d)Multiplier measures the effect of growth in investment on consumption, while the accelerator measures the effect of growth in consumption on investment.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the key difference between the multiplier and the accelerator?a)Multiplier depends on changes in consumption, while the accelerator depends on changes in investment.b)Multiplier depends on changes in investment, while the accelerator depends on changes in consumption.c)Multiplier is dependent on psychological factors, while the accelerator is dependent on technological factors.d)Multiplier measures the effect of growth in investment on consumption, while the accelerator measures the effect of growth in consumption on investment.Correct answer is option 'A'. Can you explain this answer?.
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