According to Classical Economics, the reasons all savings will be invested is
A) the government will make rules to force that to happen.
B) savings will be deposited in banks and lent to investors.
C) people only save money to invest it.
D) All of the above

Question

Quizplus · Accepted Answer

Classical Economics believes that savings will be invested through the banking sector. Banks collect savings from individuals and lend it to investors or entrepreneurs who will use it to create goods and services in the economy. Therefore, savings will automatically be invested through the banking system without the need for government intervention or forcing individuals to invest.

According to Classical Economics, the Reasons All Savings Will Be