Unit IX: Consumption, Saving and Investment Functions | BCA 6th Semester Applied Economics Notes Pdf

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.

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 Pdf:

• Unit I: Introduction Of Economics
• Unit II: Theory Of Consumer Demand
• Unit III: Analysis Of Cost And Revenue
• Unit IV: Theory Of Production
• Unit V: Product Pricing
• Unit VI: Factor Pricing
• Unit VII: National Income
• Unit VIII: Theory Of Employment
• Unit X: Business Cycle
• Unit XI: The Mechanism Of Foreign Exchange
• Unit XII: Macro Stabilizing Policies
• Unit XIII: Economics of Development