ACCCELERATION PRINCIPLE

This is an economic concept that creates the connection between the capital investment and the outputs. In this principle, if the consumer goods demand increases then the change in percentage in the demands for investments required to manufacture goods such as machines will increase more (and the other way around). In simple words, if the income of the country increases, there will always be a similar but magnified change in the cost of investment.

It is also sometimes being called as the accelerator principle.