Consumption saving and Investment.pptx

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Consumption definition, function, propensity to consume, numerical example Saving concept and terms, saving function, propensity to save, numerical example

Economy & Finance

Topic
Consumption Saving and
Investment
Date: 7th February 2019
Lecture 10th

Topic Layouts
 Revision of last lecture
 Non income determinants of Consumption
 Investment
 Determinants of Investment
 Investment Demand Curve
 Shift in Investment Demand Curve

Review
Consumption
Saving
Depends upon
level of
Disposable
Personal
Income

Non-income determinants of Consumption
 Wealth effects
 Expectations
 Consumers’ debts
 Any other factor

Investment
Investment is defined as the commitment
of current financial resources in order to
achieve higher gains in the future.

Investment Demand Curve
 Interest Rate VS Investment

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