S5 Economics: National Income Notes 3

These notes from Trinity College Nabbingo continue the topic of national income through consumption, saving and investment. They define average and marginal propensities to consume, save and import, and include short calculation exercises using shilling amounts. The material explains factors influencing household spending and saving, distinguishes several forms of investment, and outlines investment incentives. It also discusses marginal efficiency of capital, barriers to investment and measures for increasing investment in an economy. Numbered explanations connect income, taxation, prices, credit, infrastructure and government policy to these economic decisions.