The growth of capital depends upon many institutional factors as savings, foreign loans, foreign investment as well as political and financial conditions of the country.
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
Here we will take investment in terms of a schedule giving various amounts of investment associated with various levels of income. The investment schedule is the function of entrepreneurial behavior. It tells us how the investors or producers respond to a change in income or in the interest rate over a given time propensity to invest together