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:

Systematic Thinking

It involves looking at the whole picture, considering all factors and how they interrelate, rather than focusing on parts in isolation.

Analytical Fashion

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