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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Definitions:

High Need To Achieve

A psychological trait characterized by a strong desire to accomplish tasks and meet high standards of performance.

Entrepreneurial Personality

A set of personality traits or characteristics that are commonly found in successful entrepreneurs, such as risk-taking, creativity, and resilience.

Need To Achieve

The personal quality, linked to entrepreneurship, of being motivated to excel and choose situations in which success is likely.

Entrepreneurship

The act of creating, managing, and building a business venture to make a profit while taking on financial risks.