Who would be most likely to agree that "People do not always save more as interest rates rise"?
A) a classical economist
B) John Maynard Keynes
C) an efficiency wage theorist
D) a and b
E) a,b,and c

Question

Quizplus · Accepted Answer

John Maynard Keynes argued that the relationship between interest rates and savings is not direct; people might not save more as interest rates rise due to the liquidity preference and the propensity to consume.

Who Would Be Most Likely to Agree That "People Do