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Theory of Investment in The General Theory

In: On Keynes’s Method

Author

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  • Anna M. Carabelli

    (University of Pavia)

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.

Suggested Citation

  • Anna M. Carabelli, 1988. "Theory of Investment in The General Theory," Palgrave Macmillan Books, in: On Keynes’s Method, chapter 12, pages 207-231, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-19414-8_12
    DOI: 10.1007/978-1-349-19414-8_12
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