According to Classical Theory, Desired Saving Always Equals Investment Due

question 76

Multiple Choice

According to classical theory, desired saving always equals investment due to changes in

• A) prices.
• B) wages.
• C) the interest rate.
• D) taxes.

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Definitions:

Stock Prices

The cost of purchasing a share of equity in a company, which fluctuates based on market conditions.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

2-for-1 Split

A stock split in which a company divides its existing stock into two shares, effectively halving the price of each share while doubling the number of shares owned by shareholders.

5-for-3 Split

A type of stock split where shareholders receive 5 shares for every 3 shares they hold, effectively increasing the share quantity and adjusting the stock price downward.