According to Keynes, real saving and real consumption spending are functions of
A) economic expectations.
B) an individual's future earning potential.
C) current educational attainment.
D) current real disposable income.

Question

Quizplus · Accepted Answer

According to Keynes, real saving and real consumption spending are functions of current real disposable income. Real disposable income is the income of an individual after taking into account taxes and inflation. Higher real disposable income leads to higher saving and higher consumption spending.

According to Keynes, Real Saving and Real Consumption Spending Are