----------- is called as "Real Theory of Interest"
A)Classical theory
B)Neo-classical theory
C)Demand and Supply theory
D)Productivity theory

Question

Quizplus · Accepted Answer

The Classical theory, also known as the Real Theory of Interest, posits that the interest rate is determined by the supply of savings and the demand for investment funds. It emphasizes the role of real factors (such as productivity and thrift) in the determination of the interest rate, rather than monetary factors.

----------- Is Called as "Real Theory of Interest