Unit IX: Consumption, Saving and Investment Functions - Applied Economics

Unit IX: Consumption, Saving and Investment Functions - Applied Economics

Consumption is defined as the amount spent by people for buying goods and services to satisfy wants. In macroeconomics, aggregate or total consumption is considered. The consumption function is the mathematical or quantitative relationship between consumption and determinants of consumption.

Consumption, Saving and Investment Functions - Applied Economics

In this “Consumption, Saving and Investment Functions - Applied Economics” you will learn about following topics:

  1. Consumption and Consumption Function
  2. Keynes’ Psychological Law of Consumption Function
  3. Propositions of Keynes’ Psychological Law of Consumption Function
  4. Attributes of Consumption Function (APC and MPC)
  5. Difference between APC and MPC
  6. Determinants of Consumption
  7. Measures to Raise Consumption
  8. Saving and Saving Function
  9. Derivation of Saving Curve
  10. Technical Attributes of Saving function
  11. Relationship between APC and MPC, APS and MPS
  12. Types of Saving
  13. Determinants of Saving
  14. Paradox of Thrift
  15. Investment Function
  16. Meaning of Capital and Investment
  17. Types of Investment
  18. Marginal Efficiency of Capital (MEC)
  19. Determinants of Investment
  20. Investment Multiplier
  21. The relation between MPC and Multiplier
  22. Leakage of Multiplier
  23. Importance of Multiplier
  24. Accelerator Principle


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BCA 6th Semester Applied Economics Notes:

Unit I: Introduction Of Economics - Applied Economics

Unit II: Theory Of Consumer Demand - Applied Economics

Unit III: Analysis Of Cost And Revenue - Applied Economics

Unit IV: Theory Of Production - Applied Economics

Unit V: Product Pricing - Applied Economics

Unit VI: Factor Pricing - Applied Economics

Unit VII: National Income - Applied Economics

Unit VIII: Theory Of Employment - Applied Economics

Unit X: Business Cycle - Applied Economics

Unit XI: The Mechanism Of Foreign Exchange - Applied Economics

Unit XII: Macro Stabilizing Policies - Applied Economics

Unit XIII: Economics Of Development - Applied Economics


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