1.10 According to Keynes, an increase in saving and decrease in consumption may lower total spending in...

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1.10 According to Keynes, an increase in saving and decrease in consumption may lower total spending in the economy.

But how could this happen if the increased saving lowers interest rates (as shown in the last chapter)?

Wouldn’t a decrease in interest rates increase investment spending, thus counteracting the decrease in consumption spending?

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Economics

ISBN: 978-0324538014

8th Edition

Authors: Roger A Arnold

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Question Posted: Nov 04, 2024 02:00 AM

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1.10 According to Keynes, an increase in saving and decrease in consumption may lower total spending in...

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Economics

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