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The Interaction of Economic Decision

Author

Listed:
  • Costică Vlad

    ("Ovidius" University of Constanta)

  • Adriana Cristina Pavel Surlaru

    (Economic High School of Buzău)

Abstract

Any economic action shall take place on the basis of a succession of domain-specific decisions. In fact, economic decisions are made on two stages, with a strong interaction and correlation between them. The first level of importance is given to investment and financing decisions, backed by two other decisions, namely savings and consumption. In real activity, it is not possible to research each of the decisions separately. In theory, however, the perfect capital market model was created, based on a set of criteria considered durable over time. It should be noted that even if the basis of decisions is made under pre-established assumptions, they are of good practical application. The authors' intention is to explain to the economic environment the characteristics of each decision and the importance of their practical compliance.

Suggested Citation

  • Costică Vlad & Adriana Cristina Pavel Surlaru, 2019. "The Interaction of Economic Decision," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 934-938, December.
    • Handle: RePEc:ovi:oviste:v:xix:y:2019:i:2:p:934-938
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    More about this item

    Keywords

    consumption decision; saving decision; investment decision; financing decision financial capital; physical capital;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • G01 - Financial Economics - - General - - - Financial Crises

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