Financial Modeling Concepts

1 words in this vocabulary list

noun a principle in economics that suggests that an increase in demand for goods will lead to an increase in production to meet that demand

  • The acceleration principle states that an increase in demand for goods will lead to an even greater increase in investment.
  • According to the acceleration principle, when people want more stuff, businesses invest more to make it.
  • The acceleration principle basically says that when people start buying more, companies start making more.
  • Just like a snowball rolling downhill, the acceleration principle shows how demand can quickly build upon itself.