The classical theory of the loanable funds market concluded that
A) Saving and investment would not be equal because of changes in the volume of bank credit.
B) An increase in the desire to save would increase the interest rate and lower the volume of investment.
C) The interest rate would equate saving and investment and thereby undermine Say's law.
D) The interest rate would equate saving and investment and thereby cause Say's law to be valiD.
Correct Answer:
Verified
Q27: In the "classical" region of the aggregate
Q28: Under what condition will a decrease in
Q29: Keynesian theory
A)Established the validity of Say's Law.
B)Assumes
Q30: According to classical macroeconomic theory,
A)aggregate supply automatically
Q31: If the economy is in the vertical
Q33: The wealth or real balances effect indicates
Q34: Keynesian economics finds fault with the classical
Q35: John Maynard Keynes
A)agreed with classical writers that
Q36: Increases in aggregate demand
A)lead to increases in
Q37: Classical economics was based upon the belief
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents