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Accelerator, Accelerator Principle

 
Business Dictionary: Accelerator, Accelerator Principle

Proposition that Investment responds to growth in output. If the rate of growth of output changes, the level of investment will change. The ratio between the change in the rate of growth of output and the change in investment is the accelerator.

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Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more