The classical economist holds that interest rates are set by

Name: The classical economist holds that interest rates are set by
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Classical economists believe that interest rates are primarily determined by supply and demand in the market for loanable funds. This means that the interest rate adjusts to balance the supply of and demand for saving and investment. The government and banks may impact interest rates, but they are not the primary determinant according to classical economic theory.

The Classical Economist Holds That Interest Rates Are Set by