Which of the following is not an assumption made by classical economists?
A) Supply creates its own demand.
B) Wages and prices are flexible.
C) Savings always equals investment.
D) Interest rates are not in important.

Question

Quizplus · Accepted Answer

Classical economists assume that supply creates its own demand (Say's Law), that wages and prices are flexible, and that savings always equal investment. They do not assume that interest rates are unimportant; in fact, interest rates are considered crucial for balancing savings and investment.

Which of the Following Is Not an Assumption Made by Classical