According to neoclassical theory,an increase in the level of saving will cause the rate of interest to fall.

Name: According to neoclassical theory,an increase in the level of saving will cause the rate of interest to fall.
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According to neoclassical theory, an increase in saving will lead to a higher supply of loanable funds, causing the interest rate to fall in order to bring demand for loans in line with this increased supply. This is commonly known as the "loanable funds theory" of interest rates.

According to Neoclassical Theory,an Increase in the Level of Saving