Keynes and Interest Rates

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My name is Brendan Hanke and I attend the University of Puget Sound in Tacoma, Washington. I am currently studying abroad for a semester in Scotland and researching a paper on the Keynesian theory of the interest rate. I came across your page dedicated in his honor and wondered if you would be able to clear up a question I have regarding Keynes' view. Is it true that according to Keynes' view, an increase in the amount of saving will result in a decline of income? Correct me if I am wrong but am I right in supposing that Keynes' view of the interest rate states that this rate is not the "price" that equates the supply of loanable funds and the demand for these funds, but rather a rate which determines the liquidity preference of an investor.

Thank You for your time,

Brendan Hanke

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