Theory of Investment in The General Theory

Anna M. Carabelli
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Anna M. Carabelli: University of Pavia

Chapter 12 in On Keynes’s Method, 1988, pp 207-231 from Palgrave Macmillan

Abstract: Abstract According to the neo-classical theory, investment was determined by market forces at the intersection point of the demand for capital by entrepreneurs and of the supply curve of capital (saving) by families; the rate of interest played the role of the price which brought into equilibrium demand and supply.

Keywords: Economic Agent; Supply Curve; Equivalent Certainty; Effective Demand; Animal Spirit (search for similar items in EconPapers)
Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-19414-8_12

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DOI: 10.1007/978-1-349-19414-8_12

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