Keynes was concerned about an implication of his consumption theory: that as an economy becomes more prosperous,its saving rate becomes too ________ to sustain that prosperity.Such a long-term trend in the U.S.saving rate is ________ in the time-series data.
A)large,found
B)large,not found
C)small,found
D)small,not found

Question

Quizplus · Accepted Answer

Keynes was concerned that as an economy becomes more prosperous, the saving rate would become too large to sustain that prosperity. This trend is not found in the time-series data, as the U.S. saving rate has not consistently increased with economic prosperity.

Keynes Was Concerned About an Implication of His Consumption Theory