Question: What would cause the value of the accelerator to increase?
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a.a reduction in tax rates
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b.an increase in the capital-output ratio
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c.an increase in the saving ratio
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d.an increase in the marginal propensity to consume
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e.None of these
Answer: b
 a reduction in tax rates b) an increase in the capital-output ratio c) an increase in the saving ratio d) an increase in the marginal propensity to consume e) None of these Ans. b) an increase in the capital-output ratio
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