According to Keynes, the most important determinant of an individual's real saving is
A) interest rates.
B) the foreign exchange rate.
C) the individual's real disposable income.
D) the level of investment.

Question

Quizplus · Accepted Answer

According to Keynes, an individual's real saving is primarily determined by their real disposable income, which is the income that is left over after taxes and essential expenses have been paid. Factors such as interest rates, foreign exchange rates, and the level of investment may also play a role in determining an individual's saving behavior, but they are considered to be secondary factors. Ultimately, Keynes believed that individuals will save more when they have higher levels of disposable income, and will spend more when their disposable income is lower.

According to Keynes, the Most Important Determinant of an Individual's