What is the main difference between classical and Keynesian views about the prin

Question

What is the main difference between classical and Keynesian views about the principal determinant of consumption and saving levels? a. Classical economists believe consumption and saving rates are mainly determined by the inflation rate while Keynesians believe these vary according to income levels. b. Classical economists believe consumption and saving rates are mainly determined by the interest rate while Keynesians believe these vary according to income levels. c. Classical economists believe consumption and saving rates are mainly determined by unemployment rates while Keynesians believe these vary according to the interest rate. d. Classical economists believe consumption and saving rates are mainly determined by the interest rate while Keynesians believe these vary according to the inflation rate.

Explanation / Answer

Answer :-  b. Classical economists believe consumption and saving rates are mainly determined by the interest rate while Keynesians believe these vary according to income levels.

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