Which of the Following Did Classical Economists Believe Would Happen

question 115

Multiple Choice

Which of the following did classical economists believe would happen if the economy experienced a downturn?

• A) Prices would rise.
• B) Interest rates would rise.
• C) The economy would self-correct.
• D) The government would fix the inefficiencies.

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Definitions:

Sales Taxes Payable

Current liabilities on a company’s balance sheet, representing taxes collected from customers on behalf of governmental authorities which are yet to be remitted.

Credited

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

Future Payments

Obligations that are due to be paid at a future date.

Liabilities

Debts or obligations that arise during the course of business operations, which must eventually be paid off or settled.