LECTURE NOTE LECTURER: 

Consumption and savings are two of the key macroeconomic aggregates in an economy. The third is investment. The importance of these variables derives from the fact they are crucial in determining an economy‚Äüs equilibrium, level of employment and therefore,income (National income). Moreover, a change in any of them will have a multiplied effect on the level of national income. This effect usually occurred through the workings of the multiplier.