ABSTRACT
This chapter discusses saving and investment have made it abundantly clear, the total volume of saving and investment in goods must be equal. And tendency from equality will force economic adjustments such as will maintain them in equality. The relation between saving and investment can influence aggregate demand, therefore, only where saving is in the form of tokens. This can be seen if we examine each type of token-saving in turn. Finally, it assumes that the propensities to consume and invest are higher with a large real stock of money than with a small real stock, and it is higher with a high real value of assets than with a low real value, it will be found that the stock of money outstanding and the demand for money are the central determinants of aggregate demand. This conclusion is in contrast to that of the saving and investment theory, which makes saving and investment the central determinants.
