INVESTMENT IS A SACRIFICE OF CERTAIN PRESENT VALUE FOR FUTURE REWARD  Investment is employment of funds with aim of achieving additional income or growth in value.It’s a long term commitment , where essential quality is waiting for a reward.It’s a commitment of resources which have been saved or put away from current consumption in the hope […]

Deficit spending to boost economic growth

What is the economics behind this? Tax cuts increase disposable income and so will increase consumer spending and aggregate demand. Higher demand will lead to increased economic growth, at least in the short-term. Tax cuts boost aggregate demand, leading to higher real GDP. Tax cuts for business increase their retained profit and will enable more […]