Which of the following is good evidence against the classical view of Say's law?
A) Investment does not always rise as interest rates fall.
B) Consumption falls by the amount that saving increases.
C) Exports are usually greater than imports.
D) People save more at higher interest rates than lower interest rates.
E) none of the above

Question

Quizplus · Accepted Answer

Say's Law posits that supply creates its own demand, implying that all output produced in an economy will eventually be consumed. Option A, which states that investment does not always rise as interest rates fall, challenges this view by suggesting that even if money is made cheaper to borrow (through lower interest rates), it does not guarantee that all produced goods will be consumed or invested in, undermining the assumption that supply automatically creates demand.

Which of the Following Is Good Evidence Against the Classical