1.Explaining the Name of the Theory. See if you can explain both terms in the name of the “multiplieraccelerator” theory. What is meant by the accelerator? What is the multiplier? 2. Index of Consumer...

1.Explaining the Name of the Theory. See if you can explain both terms in the name of the “multiplieraccelerator” theory. What is meant by the accelerator? What is the multiplier?

2. Index of Consumer Confidence and Investment in Durable Goods. Using the ideas of “animal spirits,” explain why changes in measures of consumer confidence would be correlated to consumer spending on durable goods