Abstract
In broad terms the Keynesian and Classical approach to investment is similar. Both schools agree that a major determinant is the rate of interest. Investment demand may therefore be accepted as an expression of the demand for loanable funds. Investment demand (MEC) is the amount of new capital that will be purchased (or borrowed) at specific rates of interest.
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© 1985 John Evans-Pritchard
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Evans-Pritchard, J. (1985). Savings and Consumption. In: Macroeconomics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-17926-8_6
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DOI: https://doi.org/10.1007/978-1-349-17926-8_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-37407-8
Online ISBN: 978-1-349-17926-8
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