Keynes Believed That Increased Saving

question 31

Multiple Choice

Keynes believed that increased saving:

• A) leads to price increases.
• B) causes economic growth.
• C) causes an economy to grow by providing investment funds.
• D) causes consumer spending and total spending to fall.

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Definitions:

Perceptual Expectancy

The predisposition to perceive things in a certain way due to previous experiences or assumptions.

Previous Experiences

All the events, knowledge, learning, and personal developments that an individual has encountered prior to the current moment.

Just Noticeable Difference

The minimum level of stimulus intensity change needed to produce a noticeable variation in sensory experience.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference (JND).