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Questions › CUET-PG › CUET-PG 2018 › Q77
4 marks, −1Macroeconomics › Consumption and investment › Marginal efficiency of capital and the acceleratorModerateabout 1 min

CUET-PG 2018 Question 77: Consumption and investment

The accelerator theory of investment says that induced investment is determined by

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Answer and worked solution

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Consumption and investment has come up 74 times in 7 exams since 2005.

What this question tests

This question is on Marginal efficiency of capital and the accelerator, part of Consumption and investment in Macroeconomics.

How expected returns, interest rates and output growth drive investment.

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