Hicks Revised Theory of Demand

Hicks Revised Theory of Demand Hicks’ first theory of demand was presented in his book ‘Value and Capital.’ He revised his theory and published his book . A Revision of Demand Theory’ in 1956. Samuelson’s revealed preference theory, the...

Inflation and Forced Saving

Inflation and Forced Saving Taxation, surpluses of public enterprises and borrowings are non-inflationary methods of resource mobilisation and are ideal methods for achieving economic growth with stability. But the under-developed countries are under strong...

MODERN THEORY OF RENT

MODERN THEORY OF RENT Modern theory of rent does not confine itself to the determination of the reward of only land 8.” a factor of production. Rent according to the modern sense can arise in respect of any factor of production. It is a surplus payment in excess...

SOCIAL IMPORTANCE OF INTEREST

SOCIAL IMPORTANCE OF INTEREST Every society. socialist or capitalist. is faced with the problem of using its scarce resources in an optimum manner. Capital resources are scarce everywhere even in a socialist society. Its Allmatic Function. In all types of...

CAN THE RATE OF INTEREST FALL TO ZERO?

CAN THE RATE OF INTEREST FALL TO ZERO? Theoretically, a zero rate of interest can be conceived. As pointed out above as time goes on, people’s power to save and will to save tend to increase. The former because of the rising productive capacity and the latter...

Effect of Changes tile Variables

Effect of Changes tile Variables With the aid of Hicks-Hansen analysis, we can explain more satisfactorily the effect of changes in certain important economic variables such as desire to save, the supply of munch, investment, liquidity preferences on the rate of...