What is the primary determinant of real saving and real consumption according to Keynes? Explain
What will be an ideal response?
Keynes argued that real consumption and real saving depend primarily on an individual's current real disposable income. As someone's real disposable income rises, Keynes expected the person's real consumption spending and real saving to increase, too. He argued that individuals did not respond to the interest rate in making decisions about real saving.
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Encouraging international trade will
A) slow economic growth as many workers lose their jobs to foreign workers. B) speed economic growth as workers specialize and trade with others. C) speed economic growth because international trade limits the harm done by property rights. D) slow economic growth when a country is forced to specialize and trade with other countries. E) speed economic growth as workers diversify their knowledge and limit trade.
Between 1960 and 2010, the annual growth rate in percent per year was the highest in
A) China. B) United States. C) Brazil. D) Singapore. E) South Korea.