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Consider the following statements and identify the correct ones:(A) According to the accelerator models, investment demand is proportional to the chan
Question

Consider the following statements and identify the correct ones:
(A) According to the accelerator models, investment demand is proportional to the change in GNP.
(B) The real rate is the nominal rate of interest plus the inflation.
(C) The higher the real interest rate, the higher is the rental cost of capital.
(D) Investment is a stock concept.
(E) Rate of interest is a flow concept.

A.

(B) and (C) only

B.

(A) and (B) only

C.

(A) and (C) only

D.

(A), (B) and (C) only

Correct option is A


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