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Employment.4. It is possible to add the fourth condition which promotes not so much Stability of system, how many the tendency to, that a deviation in any One party changed the sign properly. It consists that Size of investments, higher (or lower), than prevailing Before, starts to influence adversely (or it is favorable) on Marginal efficiency of the capital if it is saved during the period, Which, being it is measured advanced in years, it is not so great.
1. Our first condition of stability, namely that the animator, Though it and more units, is not too great, looks very plausible, As the psychological characteristic of a human nature. When the real The income increases, pressure of current requirements decreases and
Surplus over requirements of the established standard of living increases; if
The real earnings fall, there is the return. Thus, quite Naturally - at least on the average for company, - that flowing Consumption should increase, when employment grows, but not on all Size of a gain of real earnings; that it should be reduced, when Employment decreases, but not on all size of reduction of real earnings.
Besides, that is inherent on the average for separate persons, possibly, should
To become inherent as well for the governments, especially in a century, when
Progressing growth of unemployment usually compels the state to render The help from extra funds.
But irrespective of, whether this is represented to the reader psychological
The law as true a priori or not, the life, undoubtedly, was absolutely Other if this law did not act. So, in this case an increase of investment, Whatever small it was, would cause cumulative growth of the effective Demand until the full employment condition would be reached.
On the contrary, disinvesting would cause cumulative falling Effective demand until would remain any taken The person. However experience shows that we usually are in the intermediate Position. It is not excluded that the interval, in which can be found Really instability prevails. But if business is so, this
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