In the context of investments, which of the following statement(s) is/are CORRECT?
A. According to the accelerator model, investment demand is proportional to change in income
B. The higher the real interest rate, the higher is the rental cost of capital
C. Investment is a stock variable
D. The real rate of interest is equal to the nominal rate of interest plus the inflation rate
Choose the correct answer from the options given below:
1
A and B only
2
A and D only
3
B and C only
4
C and D only