Which of the Following Is True in the Classical Model

question 37

Multiple Choice

Which of the following is true in the classical model?

• A) A spontaneous increase in spending can cause an increase in output and employment.
• B) An increase in output and employment can cause a decrease in spending.
• C) A spontaneous decrease in spending can cause an increase in output and employment.
• D) An increase in output and employment can cause an increase in spending.
• E) A spontaneous decrease in spending can cause a decrease in output and an increase in employment.

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Definitions:

Trading Of Securities

The buying and selling of financial instruments such as stocks, bonds, and derivatives.

Deceptive And Manipulative Practices

Actions deliberately intended to mislead or trick others, often for personal or financial gain and at the expense of others.

Securities Regulation

Laws and regulations governing the issuance, trading, and enforcement of rights associated with financial instruments like stocks and bonds.

Securities Act

A law governing the issue and sale of securities to protect investors through requiring disclosures via registration of securities.