Keynesian theory is based on the hypothesis that
A)saving and consumption are influenced primarily by real current disposable income.
B)saving is influenced primarily by the interest rate.
C)planned savings equal planned investment only at full employment.
D)full employment is automatically attained in any economy.

Question

Quizplus · Accepted Answer

Keynesian theory posits that saving and consumption are primarily influenced by real current disposable income, as individuals base their spending and saving decisions on the income they currently have available.

Keynesian Theory Is Based on the Hypothesis That