From Cambridge to Eternity: “Marginal Propensity to Consume 02”
According to Adam Smith (1776, Book II, Chapter I), none but for a perfectly crazy man would waste the “stock.” One who “throw the savings into the sea,” to borrow from Thomas Malthus (1836, p.325), must shock outsiders exogenous to her residence. All in all, savings will end up at some useful “stocks” not excluding human assets. Moreover, to the rest of us who generally abide by GAAP, the division between consumption ( C ) and investment ( I ≡ S ) is more of naming than of reality. Now we go over an individual after another to the aggregate economy. Case Study 01: Jane D’Introduction . The sources of money are somewhat humble such as going an errand or bussing eatery tables. Her uses of money are partly for maintenance and mos tly for growth in the human asset, “physical” and mental. The gap over the defined year ...