Question

what was the reason for keynes disagreeing with classical economists regarding why people save money?

Answer 1

Classical economics is basically free-advertise financial matters, which keeps up that administration inclusion in dealing with the economy ought to be restricted. Keynesian financial aspects uphold the view that the legislature should play a functioning job in dealing with the economy, especially in despondency/downturn like periods.

Keynesian disagrees because of the following reasons:

• Classical financial analysts have a few worries about joblessness yet are progressively stressed overvalue expansion. They consider inflation to be the greatest danger to a solid long haul development of the economy. Classicists accept the economy will consistently look for a degree of full business. They think joblessness results from government impedance in the free market or the presence of an imposing business model in the industry.
• Classical economics underscores the way that free markets lead to a productive result and are automatic.
• In macroeconomics, Classical matters expect the since quite a while ago run total stock bend is inelastic; in this way, any deviation from the full business might be brief.
• The Classical model burdens the significance of constraining government intercession and endeavoring to keep advertises liberated from potential boundaries to their proficient activity.
• Keynesians contend that the economy can be beneath the full limit with regards to an impressive time because of defective markets.
• Keynesians place a more prominent job for the expansionary financial approach (government mediation) to beat the downturn.