The function of the interest rate in the Classical model was to keep the economy at full employment equilibrium by assuring that
A) actual saving equaled actual investment.
B) actual saving equaled desired investment.
C) desired saving equaled desired investment.
D) desired saving equaled actual investment.
Correct Answer:
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Q1: In the Classical view, falling interest rates
Q2: According to Classical interest rate theory, falling
Q3: According to Classical interest rate theory, rising
Q4: In the Classical model, a decrease in
Q5: Which of the following statements is inconsistent
Q7: Under the Cambridge cash balance approach, money
Q8: In the Classical interest theory, saving and
Q9: Money neutrality implies that changes in the
Q10: In the Classical system, the interest rate
Q11: According to Classical interest rate theory, which
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