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Accelerator, Accelerator Principle
Barron's Business Dictionary:
Accelerator, Accelerator Principle
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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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Barron's Business Dictionary
Dictionary of Business Terms
. Copyright © 2007 by
Barron's Educational Series, Inc
. All rights reserved.
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