According to Keynes, an Individual's Level of Saving Is Primarily

question 279

Multiple Choice

According to Keynes, an individual's level of saving is primarily determined by

• A) the interest rate.
• B) the individual's current level of real disposable income.
• C) the individual's expectation about the stock market.
• D) real Gross Domestic Product (GDP) for the economy.

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Definitions:

Population Growth

The increase in the number of individuals in a population, usually expressed as a percentage of the total population per year.

Consumption Per Person

A measure of the average amount of goods and services consumed by each person within a specific population.

World Commodity Prices

The prices at which basic products, which are traded globally, are sold and bought in the international markets.

Short Run

(1) In microeconomics, a period of time in which producers are able to change the quantities of some but not all of the resources they employ; a period in which some resources (usually plant) are fixed and some are variable. (2) In macroeconomics, a period in which nominal wages and other input prices do not change in response to a change in the price level.