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Dual decision
The dual-decision hypothesis was proposed by Robert W. Clower in "The Keynesian Counterrevolution: A Theoretical Appraisal"

Clower, Robert W. (1965), ‘The Keynesian Counterrevolution: A Theoretical Appraisal’, in Hahn, F. H. and Brechling, F. P.R. (eds), The Theory of Interest Rates, London: Macmillan.

‘Dual Decision Hypothesis’ 1999, in An Encyclopedia of Keynesian Economics, Edward Elgar Publishing, Cheltenham, United Kingdom, viewed 10 February 2013, 

Cumulative process is a theory in monetary economics proposed by Knut Wicksell that relates price level to the difference between the return to capital and the market rate of interest.

Previous quantity theory predicted that price level and interest rates would move in opposite directions, but observations showed that they tended to move in the same direction, a contradiction later known as Gibson's paradox. Wicksell sought to resolve the apparent contradiction between quantity theory and observed reality. Before Wicksell, defenders of the quantity theory of money attempted to explain this relationship through the real-balance effect where higher prices lead to an increased demand for cash. Wicksell omitted this effect from his theory entirely.

Wicksell's analysis looks at two different kinds of economies: a "pure cash economy" and a "pure credit economy." In a pure cash economy reserve requirements limit the cumulative process. A higher price level means that people withdraw more money which puts pressure on bank reserves.

Origin
The theory had been presented earlier by Henry Thornton (reformer). Wicksell had not read Thornton's work, but he would have been familiar with some of the ideas through their influence on David Ricardo's On the Principles of Political Economy and Taxation.

Further development
Wicksell's work influenced many other economists who investigated the relationship between interest rates in price level and the differences between the natural and market rate of interest.

Keynes's A Treatise on Money] . The Wicksellian influence on the work probably came through [[Gustav Cassel's The Theory of Social Economy (1923) rather than directly from Wicksell's works. Keynes looked at the difference between the natural and market rate of interest, or savings and investment, and their relation to "windfall profit" as a basis for a dynamic, disequilibrium process.Like Wicksell, Keynes looked at the dynamics of price level changes, but he went further by looking at the role of interest rates in the credit cycle.

Ludwig von Mises stressed that the difference between natural and market interest rates would have different effects on the prices of consumption and investment goods. Friedrich Hayek built on Mises work. Hayek did not concern himself with price level dynamics; He placed more emphasis on disturbances in the equilibrium of intertemporal exchange rates caused by these interest rate spreads.