Question: Differentiate between accelerator principle of investment and investment multiplier. Explain the determinants of induced investment in an economy. Given C=a+bY, explain a and b

Differentiate between accelerator principle of investment and investment multiplier. Explain the determinants

Differentiate between accelerator principle of investment and investment multiplier. Explain the determinants of induced investment in an economy. Given C=a+bY, explain "a" and "b" and then sketch and derive the consumption and savings functions.

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