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In Samuelson's model of multiplier-accelerator interaction, what is the role of the multiplier concept?
  • a)
    It determines the rate of interest.
  • b)
    It influences investment decisions.
  • c)
    It explains the interaction between innovations and production methods.
  • d)
    It amplifies the effect of changes in income on investment.
Correct answer is option 'D'. Can you explain this answer?
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In Samuelson's model of multiplier-accelerator interaction, what is th...
In Samuelson's model, the multiplier concept plays a crucial role in amplifying the effects of changes in income on investment and economic activities. When autonomous investment increases income, the multiplier effect causes consumer demand to increase, leading to a derived increase in investment. This interaction between the multiplier and accelerator creates cyclical fluctuations in the economy.
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In Samuelson's model of multiplier-accelerator interaction, what is the role of the multiplier concept?a)It determines the rate of interest.b)It influences investment decisions.c)It explains the interaction between innovations and production methods.d)It amplifies the effect of changes in income on investment.Correct answer is option 'D'. Can you explain this answer?
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In Samuelson's model of multiplier-accelerator interaction, what is the role of the multiplier concept?a)It determines the rate of interest.b)It influences investment decisions.c)It explains the interaction between innovations and production methods.d)It amplifies the effect of changes in income on investment.Correct answer is option 'D'. 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 In Samuelson's model of multiplier-accelerator interaction, what is the role of the multiplier concept?a)It determines the rate of interest.b)It influences investment decisions.c)It explains the interaction between innovations and production methods.d)It amplifies the effect of changes in income on investment.Correct answer is option 'D'. 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 In Samuelson's model of multiplier-accelerator interaction, what is the role of the multiplier concept?a)It determines the rate of interest.b)It influences investment decisions.c)It explains the interaction between innovations and production methods.d)It amplifies the effect of changes in income on investment.Correct answer is option 'D'. Can you explain this answer?.
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