Keynes believed that saving is
A) more responsive to changes in income than to changes in interest rates.
B) less responsive to changes in income than to changes in interest rates.
C) equally responsive to changes in income and to changes in interest rates.
D) dependent only on changes in interest rates.

Question

Quizplus · Accepted Answer

Keynes argued that saving behavior is more influenced by changes in income than by changes in interest rates. He believed that as people's income increases, they are more likely to save more, indicating a direct relationship between income levels and saving rates, rather than a primary dependence on interest rates.

Keynes Believed That Saving Is