In the Classical view, rising interest rates reduce
A) government spending.
B) saving.
C) velocity.
D) investment.

Name: In the Classical view, rising interest rates reduce A) government spending. B) saving. C) velocity. D) investment.
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Question

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According to the Classical view, rising interest rates decrease investment as high interest rates make it more expensive for firms to borrow money to invest in their businesses. This in turn can lead to a decrease in overall economic growth.

In the Classical View, Rising Interest Rates Reduce