In income determination theory, acceleration principles shows that

JAMB Economics 2024 145 views
Source: JAMB · 2024

In income determination theory, acceleration principles shows that

  1. income and investment are both causes
  2. income and investment are both effects
  3. incomes is of on effect on investment
  4. investment is the causes, while income is the effects ✓
Explanation

The accelerator principle says investment drives changes in income. When businesses invest more, national income grows.

Investment creates jobs and production. This leads to higher incomes for workers and business owners.

Investment is the cause that accelerates income growth in an economy.

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