In explaining balance-of-payments adjustments,the classical economists
A) Focused on interest rates exclusively
B) Remained aware of the role of interest rates
C) Only focused their attention on short-term interest rates
D) Paid exclusive attention to long-tem interest rates

Question

Quizplus · Accepted Answer

Classical economists recognized the importance of interest rates in balance-of-payments adjustments, but they did not focus exclusively on them and also considered other factors such as price levels and exchange rates.

In Explaining Balance-Of-Payments Adjustments,the Classical Economists