then he will plan to re-invest more than his current savings
(he will plan to borrow)
if it is equal I(II)= I
he will just reinvest his current savings
and if it is smaller than the standard,
he will plan to reinvest only part of his current savings.
This is then written as follows:
D= E +r [I(II)-I]
4) Relation to earlier formulation:
The original idea was that investment decisions
are a function of the rate of profit P
K
(In this (and its change).