INDEX

Clark, C. G., on investment in GreatBritain , 102

Classical economists, 3 n.

Classical theory, its limitations,378

postulates of, 4-22, 34, 304and marginal efficiency of capital,i39-4i.

and effective demand, 32-4and employment, 3, 112, 284and interest and investment, 93,165-6, 174-93, 35 r > 35 6and Mercantilism, 333-5? 339?348-9

and reduction of money-wages,257-60

Hobson on, 366“Closed shop”, 16Closed system, 11, 265wage policy in, 270Commodity exchanges, 160 n.Commodity-rates of interest, seeInterestCompetition—imperfect, 5the degree of, 245the Mercantilists on excessive,345-6 .

and classical theory, 29, 379Confidence—

the state of, 148-9, 16 r, 248and public works, 120and reduction of money-wages,264

in the nineteenth century, 307and the Trade Cycle, 317and Hobson’s theory, 367Consumption-capital, 226Cost—

carrying, see Carrying costfactor, see Factor costlong period, 68-9marginal, 294-6, 302-3prime, see Prime costsupplementary, see Supplement-ary cost

basic supplementary, see Supple-mentary cost

current supplementary, see Sup-plementary costuser, see User costwage, see Wage costCost of bringing lender and bor-rower together, 208, 219, 309

387

Cost-unit, defined, 302, 303, 309,328Costs, level of domestic, and foreigninvestment, 336-8Consume, propensity to—defined, 90

the objective factors, 89-106the subjective factors, 107-12its place in the General Theory,27-31, 245, 247, 249and propensity to save, 65and windfall changes in capitalvalues, 92

and accumulation, 335, 337,373> 375

and employment, 211and employment in wealthycommunity, 31, 219and employment function, 281and income tax, 94, 373and rate of interest, 93, 178, 184and the Trade Cycle , 313-14?319-21, 324-9

and money-wages, 239, 260,262-3

in nineteenth century, 307and future policy, 373, 375and classical theory of interest,178, 184and Pigou , 279and Hobson, 370marginal propensity to—defined, 115discussed, 113-31and the multiplier, 115and stability, 248, 250-52and reduction of money-wages,261-2

in wealthy community, 31, 349Consumption—defined, 61

in the General Theory, 27, 248,250-52

and nature of capital, 214-17and propensity to consume, 89-90,92, 96, 98

and “sound finance”, 104-6and rate of interest, 166and New Deal , 332and saving and investment, 61-5,74, 82

and nature of saving, 21, 64-5,210-13

and the Trade Cycle , 327, 330,332

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