JAMB - Economics (2024 - No. 6)
In income determination theory, acceleration principles shows that
investment is the causes, while income is the effects
income and investment are both effects
incomes is of on effect on investment
income and investment are both causes
Explanation
In income determination theory, the acceleration principle suggests that investment is the primary driver or cause, whil income is the resulting effect. The acceleration principle states that changes in investment levels lead to amplified or accelerated changes in income.
The acceleration principle posits that changes in investment levels have a multiplier effect on income. When investment increases, it leads to increased production, employment, and income generation.
The acceleration principle posits that changes in investment levels have a multiplier effect on income. When investment increases, it leads to increased production, employment, and income generation.
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