The Classical Economists Felt That Saving Would Be Equal to Investment

question 64

Multiple Choice

The classical economists felt that saving would be equal to investment because

• A) wages are flexible.
• B) prices of domestic goods are flexible.
• C) interest rates are flexible.
• D) prices of imports are flexible.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflected in its income statement.

Estimated Liability

A projected financial obligation a company expects to incur due to past transactions or events, but whose amount or timing is not yet certain.

Uncertain Amount

A financial term used to describe any value or sum that cannot be precisely determined or is subject to change due to various factors.

Payroll Register

A document that summarizes the wages, deductions, and net pay for all employees for a specific payroll period.