According to the classical system,saving is a function of

Name: According to the classical system,saving is a function of
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According to the classical system, saving is a function of the real interest rate, which is the price of loanable funds in the economy. As the real interest rate increases, the return on saving increases, incentivizing individuals to save more of their income. Therefore, the real interest rate is the main determinant of saving in the classical system.

According to the Classical System,saving Is a Function of