In the classical model with fixed income, if the interest rate is too low, then investment is too
And the demand for output the supply.
A)high; exceeds
B)high; falls short of
C)low; exceeds
D)low; falls short of

Question

Quizplus · Accepted Answer

In the classical model with fixed income, a low interest rate encourages high investment, which can lead to demand for output exceeding the supply.

In the Classical Model with Fixed Income, If the Interest