In income determination theory, acceleration principles shows that
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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
The correct answer is: A
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.