<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>In the article theoretical deliberations relating to impact of propensities on basic macroeconomic phenomena were presented. A general definition of propensity was discussed. The influence of propensity for consumption, propensity for investment and propensity for thesaurization on national income, interest rates, consumption expenditures, investments and money supply was analyzed. Derivatives that make it possible to identify quantitative effects of propensities were introduced. On the basis of the discussed Keynesian model it is possible to say that the propensity to consume increases interest rate and national income, the propensity to invest makes investments, national income and interest rates higher and the propensity for thesaurization could increase interest rates by lowering money supply.</p></abstract>

In the article theoretical deliberations relating to impact of propensities on basic macroeconomic phenomena were presented. A general definition of propensity was discussed. The influence of propensity for consumption, propensity for investment and propensity for thesaurization on national income, interest rates, consumption expenditures, investments and money supply was analyzed. Derivatives that make it possible to identify quantitative effects of propensities were introduced. On the basis of the discussed Keynesian model it is possible to say that the propensity to consume increases interest rate and national income, the propensity to invest makes investments, national income and interest rates higher and the propensity for thesaurization could increase interest rates by lowering money supply.

Considerations Concerning the Impact of Propensities on Basic Macroeconomic Occurrences

Department of Econometrics and Statistics, Faculty of Economics and Management, University of Szczecin, Mickiewicza 64, 71-101 Szczecin

Folia Oeconomica Stetinensia

In the article theoretical deliberations relating to impact of propensities on basic macroeconomic phenomena were presented. A general definition of propensity...

Considerations Concerning the Impact of Propensities on Basic Macroeconomic Occurrences

Published Online: Mar 09, 2009

Page range: 109 - 116

DOI: https://doi.org/10.2478/v10031-008-0029-4

Keywords
propensities, propensity for consumption, propensity for investment, propensity for thesaurization, Keynesian models

This content is open access.

Considerations Concerning the Impact of Propensities on Basic Macroeconomic Occurrences

Published Online: Mar 09, 2009

Page range: 109 - 116

DOI: https://doi.org/10.2478/v10031-008-0029-4

Keywordspropensities, propensity for consumption, propensity for investment, propensity for thesaurization, Keynesian models

This content is open access.

Keywords
propensities, propensity for consumption, propensity for investment, propensity for thesaurization, Keynesian models