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accelerator principle (E2)<br />A major theory of investment which asserts that the amount of net investment in a given time period will be equal to a coefficient approximating to the amount of capital needed to produce another unit of output multiplied by the change in income. An early writer using this principle was Aftalion in Les Crises periodiques de surproduction (1913); later Lundberg, HARROD, SAMUELSON, HICKS and Goodwin included it in their investment equations. The basic principle, expressed in an equation where I is net investment in year t, a is the accelerator coefficient and L1Y is the annual change in income, has been modified to take into account different reaction times to a change in income and the existence of EXCESS CAPACITY.
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<strong>COA</strong> – Cost of Attendance, an estimate of a student' s total education-related expenses for an enrollment period. The COA generally includes tuition, fees, room, board, books, supplies, and personal expenses. May also be referred to as the “budget.”
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<strong>Verification</strong> – A school' s procedure for checking the accuracy of information reported by students on their FAFSAs.
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