Asked by
stacy bratlien
on Oct 12, 2024Verified
Keynesian economist believe that there is a _____ relationship between savings and interest rates and a _______ relationship between investment and interest rates.
A) direct;direct
B) direct;inverse
C) inverse;inverse
D) inverse;direct
Keynesian Economist
An economist who believes in Keynesian economics, which advocates for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.
Savings
Money that is put aside for future use rather than spent immediately, often in accounts that yield interest.
Interest Rates
The percentage of a loan charged as a cost of borrowing or paid as a part of return on savings, typically expressed as an annual percentage of the principal.
- Analyze the role of interest rates in saving and investment decisions according to Keynesian economics.
Verified Answer
ET
Learning Objectives
- Analyze the role of interest rates in saving and investment decisions according to Keynesian economics.