According to the Classical Model, More Saving Leads to More

question 111

Multiple Choice

According to the classical model, more saving leads to more investment because

• A) the people who save are the same people who invest.
• B) the interest rate adjusts to keep investment equal to saving.
• C) saving and investment are two sides of the same activity.
• D) the interest rate is set by the federal government.

---

Definitions:

Procedural Memories

Memories of how to perform tasks or activities, such as riding a bicycle, that are often unconsciously retained.

Hippocampus

A curved structure located within the temporal lobe of the brain, involved in the formation of new memories and is associated with learning and emotions.

Mnemonics

Are memory aids, strategies or devices that enhance recall through association by linking them to something easier to remember.

Hierarchies

Systematic organization of people or things within a structure that ranks them in levels of importance or status.