According to the Classical Economists,which of the Following Statements Is

question 154

Multiple Choice

According to the classical economists,which of the following statements is false?

• A) There is a direct relationship between the amount individuals save and the interest rate.
• B) There is a direct relationship between the amount business firms invest and the interest rate.
• C) As the interest rate rises,the quantity supplied of loanable funds rises.
• D) Interest rate flexibility will ensure that saving is equal to investment.

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