Question: The accelerator principle is given as the function I = a Y. If accelerator in the economy is 10, and output moved from $50 million

The accelerator principle is given as the function I = a Y. If accelerator in the economy is 10, and output moved from $50 million to $75 million after net investment expenditure, calculate investment:

40 million

250 million

25 million

2.5 millio

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