Welcome to Applied Macroeconomic Centre

A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Wednesday, February 29, 2012

The 4 Ways to Spend Money

In his book 'Free to Choose', Milton Friedman described four ways to spend money.

On Whom Money is Spent

Whose Money is Spent

Someone Else
Economize and
seek highest value
Economize, but
don’t seek highest value
Someone Else’s
Don’t economize,
but seek highest value
Don’t economize
and don’t seek
highest value

Here is the video link on how he explains.

No comments:

Post a Comment