According to the Classical Economists,which of the Following Statements Is

question 154

Multiple Choice

According to the classical economists,which of the following statements is false?

• A) There is a direct relationship between the amount individuals save and the interest rate.
• B) There is a direct relationship between the amount business firms invest and the interest rate.
• C) As the interest rate rises,the quantity supplied of loanable funds rises.
• D) Interest rate flexibility will ensure that saving is equal to investment.

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Definitions:

Parasympathetic Division

Subdivision of the autonomic nervous system; characterized by having the cell bodies of its preganglionic neurons located in the brainstem and the sacral region of the spinal cord (craniosacral division); usually involved in activating vegetative functions, such as digestion, defecation, and urination.

ANS

Short for autonomic nervous system, it controls involuntary bodily functions such as heart rate, digestion, and respiratory rate.

Parasympathetic Division

A division of the autonomic nervous system responsible for stimulating "rest-and-digest" or "feed and breed" activities when the body is at rest.

Antagonistic Effects

When two or more factors work in opposition to each other, often seen in pharmacology or physiology.