Post date: 06/24/2012 - 08:52

To understand Saving and investment approach it must be noted that Saving depends upon simple and automated principles, whereas investment is based upon some flexible and dynamic factors. To make it simple, suppose in a community there is only a change

Post date: 01/21/2012 - 06:43

The Keynesian theoretical consumption function, as elaborates by the post Keynesian economists likes James Tobin, Arthur Smithies is called the absolute theory of consumption. Consumption spending is the positive function of the absolute level of income that is, higher the level of current income, higher is the consumption demand and vice versa

Post date: 01/16/2012 - 09:46

Even before the publication of Johan Maynard Keynes book, some economists were of the view that income and consumption were functionally related. However, it was Keynes who first stressed the importance of the positive functional relationship between aggregate income and aggregate consumption.  The consumption function c = f(y)