Write an outline and critical assessment for financial article 3 Essay

Write an outline and critical assessment for financial article 3 - Essay Example General theory is fundamentally about the factors which determine level of employment. His theory integrated the concepts revolution of economy and public policy. It insisted on making probable changes in the structure of payment, investment and profit to bring a long term difference in the economy, especially, the budget policy to prevent repetition of depression and to stabilise national economy. Keynes was accustomed of international environment of economy. Therefore, he proposed general theory by assuming a closed economy. His theory was easily adaptable and realistic in approach. The theory offered flexibility to the diverse economic cases of foreign trade and in case of transactions of capital. 3. In liquidity preferences, the minor probable savers need to be satisfied with the rate of interest to increase the aspiration of saving in a narrow zone. Thus, it in turn shifts the profit in all status of people when one wants liquidity; the ample hoarders provide a mean of increase in satisfied liquidity. Wealth is the reason for remoter preoccupation. Thus, it is acquired to produce potential results in an indefinite time. Therefore, it is an unsuitable subject for classical economical method. It would have worked, if the conventional structure of economy had a rapid system of consumption in the shortest possible time after the production. Modification in the economical plan is must, if growth of wealth for an indefinite delayed period is a vital factor for sustenance. However, Keynes has emphasized that the modification becomes necessary when the quantity of participation of wealth accumulation increases (Keynes, 1937). Keynes also proposed that high incomes tend to generate savings in ample amount. If one attains full employment objective consequently, level of savings will be on a satisfactory level then. Thus, aggregated demand enables substantial