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Considerations Concerning the Impact of Propensities on Basic Macroeconomic Occurrences Cover

Considerations Concerning the Impact of Propensities on Basic Macroeconomic Occurrences

By: Mariusz Doszyń  
Open Access
|Mar 2009

Abstract

In the article theoretical deliberations relating to impact of propensities on basic macroeconomic phenomena were presented. A general definition of propensity was discussed. The influence of propensity for consumption, propensity for investment and propensity for thesaurization on national income, interest rates, consumption expenditures, investments and money supply was analyzed. Derivatives that make it possible to identify quantitative effects of propensities were introduced. On the basis of the discussed Keynesian model it is possible to say that the propensity to consume increases interest rate and national income, the propensity to invest makes investments, national income and interest rates higher and the propensity for thesaurization could increase interest rates by lowering money supply.

DOI: https://doi.org/10.2478/v10031-008-0029-4 | Journal eISSN: 1898-0198 | Journal ISSN: 1730-4237
Language: English
Page range: 109 - 116
Published on: Mar 9, 2009
Published by: University of Szczecin
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2009 Mariusz Doszyń, published by University of Szczecin
This work is licensed under the Creative Commons License.

Volume 7 (2008): Issue 1 (January 2008)