How Does the Classical Position on Saving Differ from Keynes's

question 46

Multiple Choice

How does the classical position on saving differ from Keynes's position?

• A) Classical position: people save more at lower interest rates.Keynes's position: people save less at lower interest rates.
• B) Classical position: changes in the interest rate are irrelevant to saving decisions.Keynes's position: saving is directly related to the interest rate.
• C) Classical position: saving is directly related to the interest rate.Keynes's position: at times,saving may be inversely related to the interest rate.
• D) Classical position: saving can be inversely related to the interest rate.Keynes's position: consumption rises as saving rises.
• E) none of the above

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Definitions:

Survey

A drawing of the boundaries of a property prepared by a professional surveyor.

Encumbrances

Legal claims or liabilities attached to property that can affect its use, value, or transferability, such as mortgages or liens.

Discharging

The act of releasing someone from an obligation, such as a debt, duty, or legal liability, often through the payment or fulfillment of what is owed.