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.

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Definitions:

Assignable Causes

Specific, identifiable factors leading to variations in a process or system, as opposed to random variations.

Variation

The degree to which data points in a statistical distribution or dataset differ from each other and from the mean of the set.

Specification Limits

Pre-determined upper and lower bounds within which a product or process's performance is considered acceptable.

Standard Deviations

An indicator of the degree of spread or variability in a collection of data points, showing how much the values differ from the average.