Classical economists believe that savings are:
A) bad for an economy because the drop in consumer spending reduces total spending.
B) bad for an economy because the drop in investments will be a drag on growth.
C) good for an economy as a way to provide funds for investments.
D) good for an economy as a way to increase consumer purchases.

Question

Quizplus · Accepted Answer

Classical economists argue that savings are beneficial for an economy because they provide the necessary funds for investments. This perspective emphasizes the role of savings in facilitating capital accumulation, which in turn supports economic growth and development.

Classical Economists Believe That Savings Are