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

question 103

Multiple Choice

Classical economists believed that if saving were greater than investment,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:

Functional Interchangeability Tests

Procedures or assessments to determine if different products, parts, or systems can perform the same function in the same environment effectively.

Line of Commerce

Refers to a specific category of products or services within a particular industry or market.

Primary-Line Injury Claim

A type of insurance claim that involves direct or first-line compensation for injuries suffered.

Supracompetitive Pricing

Setting the price of a product or service higher than the competitive market price, often as a result of monopoly power or market inefficiencies.