A-LevelEconomicsThe macroeconomy9708/33 · May/June 2017 · Q191 Mark
It has been observed that increased growth in consumer spending results in an increase in investment by firms. Which principle of macroeconomic theory explains this relationship?
- (a)It has been observed that increased growth in consumer spending results in an increase in investment by firms. Which principle of macroeconomic theory explains this relationship? A the accelerator B the liquidity trap C the marginal efficiency of capital D the multiplier[1]
Mark scheme
Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.
- [1] Answer: A
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