UNIT-2
Economics 6
Explain the Keynes savings and investment theory.
Introduction: Saving function is the counter part of consumption function because S=Y-C. Therefore S=f(Y). Saving means…
Economics 6
Explain the liquidity preference theory of interest?
Introduction: J.M Keynes created the theory of liquidity preference theory of interest to explain the role…
Economics 6
Explain Keynesian psychological law of consumption.
Introduction: The Keynesian concept of consumption function stems from the fundamental psychological law of consumption which…
Economics 6
Explain the classical theory of employment.
Introduction: The classical economist believed in the existence of full employment in the economy. To them…
Economics 6
Explain the Keynes multiplier theory.
Multiplier meaning: The multiplier refers to the effect of changes in investment outlays on aggregate income…
Economics 6
Explain the Keynes Theory of Employment with an effective demand?
Keynes Theory of Employment: The Keynes Theory of Employment explains with the principle called an effective…