In the classical model with fixed income, if households want to save more than firms want to invest, then:
A) the interest rate rises.
B) the interest rate falls.
C) output increases.
D) output falls.
Correct Answer:
Verified
Q93: The supply of loanable funds is equivalent
Q94: If saving exceeds investment demand, and consumption
Q95: In the classical model with fixed income,
Q96: National saving is:
A) private saving.
B) public saving.
C)
Q97: The factor that makes national saving equal
Q99: Assume that equilibrium GDP (Y) is 5,000.
Q100: Public saving is:
A) always positive.
B) always negative.
C)
Q101: In the classical model with fixed income,
Q102: In the classical model with fixed income,
Q103: Assume that equilibrium GDP (Y) is 5,000.
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