} || 0% | ... : (23) - e AO Table 16-1 Workings of the Accelerator Hypothesis of Investment for the Hypothetical Mammoth Electric Company Period 0 1 2 3 4 5 100 12.0 12.0 12.0 12.0 12.0 100 10.0 11.0 11.5 11.75 11.87 400 40.0 44.0 46.0 47.0 47.5 Variable 1. Actual sales ( 2. Expected sales (Y? -0.5Y1 +0.5Y) 3. Desired stock of electric generating stations ( K4Y) 4. Net investment in electric generating stations (1"-K-K1) 5. Replacement investment (D-0.10K 1) 6. Gross investment ( 11" + D) 0.0 0.0 4.0 20 1.0 0.5 4.0 4.0 4.0 4.6 4.7 4.0 4.0 8.0 6.4 5.6 5.2. Note: All figures in billions of dollars. 2. This problem also uses the data in Table 16-1. (a) What would expected sales have to be in periods 3 to 5 for net investment to be constant at 4.0? (b) What would actual sales have to be in periods 3 to 5 to achieve a constant level of net in- vestment? (c) What would actual sales have to be in periods 2 to 4 to achieve a steady 20 percent increase in gross investment in each of the periods 3 to 5? (d) At what rate do actual sales increase in partc? I. = =: A U I B III > } || 0% | ... : (23) - e AO Table 16-1 Workings of the Accelerator Hypothesis of Investment for the Hypothetical Mammoth Electric Company Period 0 1 2 3 4 5 100 12.0 12.0 12.0 12.0 12.0 100 10.0 11.0 11.5 11.75 11.87 400 40.0 44.0 46.0 47.0 47.5 Variable 1. Actual sales ( 2. Expected sales (Y? -0.5Y1 +0.5Y) 3. Desired stock of electric generating stations ( K4Y) 4. Net investment in electric generating stations (1"-K-K1) 5. Replacement investment (D-0.10K 1) 6. Gross investment ( 11" + D) 0.0 0.0 4.0 20 1.0 0.5 4.0 4.0 4.0 4.6 4.7 4.0 4.0 8.0 6.4 5.6 5.2. Note: All figures in billions of dollars. 2. This problem also uses the data in Table 16-1. (a) What would expected sales have to be in periods 3 to 5 for net investment to be constant at 4.0? (b) What would actual sales have to be in periods 3 to 5 to achieve a constant level of net in- vestment? (c) What would actual sales have to be in periods 2 to 4 to achieve a steady 20 percent increase in gross investment in each of the periods 3 to 5? (d) At what rate do actual sales increase in partc? I. = =: A U I B III >