According to Keynesian Theory, the Most Important Determinant of Saving

question 115

Multiple Choice

According to Keynesian theory, the most important determinant of saving and consumption is

• A)the level of real disposable income.
• B)the stock of liquid assets.
• C)the stock of durable goods in the consumer's possession.
• D)the level of consumer indebtedness.

---

Definitions:

Consumption

the process by which goods and services are used up by individuals or groups, typically considered the end-use in economic production cycles.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Economic Forecasters

Experts who predict future economic conditions based on various indicators and models to guide investors, businesses, and policy making.

Fluctuations

Variations or changes in level, intensity, or value, typically describing economic indicators like prices, rates, or stock market activities.