According to Keynes, an individual's level of saving is primarily determined by
A)the interest rate.
B)the individual's current level of disposable real income.
C)the individual's assessment of the future direction of the stock market.
D)real Gross Domestic Product (GDP)for the economy.

Question

Quizplus · Accepted Answer

According to Keynes, an individual's level of saving is primarily determined by their current level of disposable real income - this is because saving is seen as a residual amount that is left over after consumption spending. The interest rate, future direction of the stock market, and real GDP may all have some influence on an individual's level of saving, but they are not the primary determinants.

According to Keynes, an Individual's Level of Saving Is Primarily