According to Keynes,what determines interest rates?
A)The level of saving
B)The level of investment
C)The velocity of money
D)Both saving and investment
E)The interaction of the demand and supply of money

Question

Quizplus · Accepted Answer

Keynes argued that interest rates are determined by the interaction of the demand for money (liquidity preference) and the supply of money, rather than by classical theories of savings and investments directly.

According to Keynes,what Determines Interest Rates