|
39. CONSUMPTION
|
INVESTMENT
|
|
1.
Meaning
It
is the expenditure incurred by the people to purchase goods and services to
satisfy their various wants.
2.
Determinants
It
is a function of income. It depends on the level of income.
3.
Features
If
the consumption is equal to production level, there is no scope for
investment.
4.
Purpose
Consumption
expenditure satisfies the wants of the people.
|
It is expenditure incurred for creation
of capital assets in the economy.
It depends on the marginal productivity
of capital and rate of interest.
If the consumption is more than
production level, there is scope for investment.
Investments generate economic development
of a country.
|
CONSUMPTION INVESTMENT
