Question: 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

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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