Classical Economists Believed That If Investment Were Greater Than Saving,the

question 53

Multiple Choice

Classical economists believed that if investment were greater than saving,the interest rate would _____,causing saving to _____ and investment to _____ until the two were equal.

• A)rise;decrease;increase
• B)fall;decrease;increase
• C)fall;increase;decrease
• D)rise;increase;decrease
• E)fall;increase;increase

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Definitions:

Dual Earner

Refers to households or partnerships where both members are employed and contribute financially.

Social Exchange Theory

A theory suggesting that human relationships and social interactions are based on the exchange of resources, rewards, and benefits.

Equality in Marriage

The state in which spouses share responsibilities, decisions, and power equally within their relationship.

Cohabit

To live together and have a sexual relationship without being married.