Question

Keynesian theory is based on the concept that saving and consumption are influenced primarily by real current disposable income. saving is influenced primarily by the interest rate. planned savings equal planned investment only at full employment. full employment is automatically attained in any economy.

Answer 1

saving and consumption are influenced primarily by real current disposable income

Step-by-step explanation:

keynesian economics is a known form of economics that is of demand-side in the sense that it encourages government action to increase and decrease demand and output.

Consumption is using ur money by spending it on new goods and services out of a household's current income.

While Saving is simply not eating up or the act of not consuming all of one's current income. Keynes argument was that the interest rate is not the most necessary factor in saving and consumption decisions. Rather, real saving and consumption decisions depend primarily on a household's real disposable income