A small rise in consumer demand can trigger a much larger investment boom

If a factory running at full capacity sees demand for its product grow by 10%, it may need to expand its machinery by far more than 10%, since even standing still requires replacing worn-out equipment on top of any new capacity. This 'accelerator effect' means business investment swings more wildly than the consumer demand driving it, amplifying booms and busts rather than simply tracking them.

— John Maurice Clark, A Study in the Theory of Industrial Fluctuations — 1917; formalised with the Keynesian multiplier by Paul Samuelson, 1939

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