Marshall’s materialist definition of economics was unable to persuade Lionel Robbins. Therefore, Robbins attempted to define economics in a better sense in his e-book The Nature and Significance of Economic Science”. His efforts provided us with essentially the most considered ‘shortage definition of economics’.
An entity whose earnings exceeds its expenditure can lend or make investments the excess revenue to assist that excess income produce more income in the future. Though however, an entity whose income is less than its expenditure can elevate capital by borrowing or promoting fairness claims, decreasing its expenses, or rising its revenue. The lender can find a borrower—a monetary intermediary corresponding to a bank —or purchase notes or bonds (company bonds, government bonds, or mutual bonds) within the bond market The lender receives interest, the borrower pays a better interest than the lender receives, and the monetary intermediary earns the difference for arranging the mortgage.… Read more