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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

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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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1 Accelerator Principle of Investment vs Investment Multiplier The accelerator principle of investment states that changes in the level of consumption ... blur-text-image

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