In the Classical View, If Desired Saving Exceeds Desired Investment

question 145

Multiple Choice

In the classical view, if desired saving exceeds desired investment

• A) government spending must fall.
• B) government spending must rise.
• C) the interest rate would decline.
• D) the interest rate would increase.

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Definitions:

Process Benchmarking

The practice of comparing business processes and performance metrics to industry bests or best practices from other companies.

External Benchmarking

The process of comparing a company's performance or processes against those of other companies, typically industry leaders, outside the organization.

Industry Benchmarking

A process of comparing business processes and performance metrics to industry bests or best practices from other industries to improve performance.

Process Benchmarking

The method of evaluating business operations and performance indicators against the highest industry standards or the most effective practices of other organizations.