Which of the Following Is Good Evidence Against the Classical

question 57

Multiple Choice

Which of the following is good evidence against the classical view of Say's law?

• A) Investment does not always rise as interest rates fall.
• B) Consumption falls by the amount that saving increases.
• C) Exports are usually greater than imports.
• D) People save more at higher interest rates than lower interest rates.
• E) none of the above

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Definitions:

Apples

Edible fruits from the apple tree, known for their sweet taste and crunchy texture, and used in a variety of culinary dishes.

Bananas

A type of fruit that is elongated, curved, and covered with a peel, typically yellow when ripe, and consumed as a sweet source of energy.

Perfect Substitute

Goods that can be used in place of one another with no loss of utility for the consumer, indicating a one-to-one substitutability.

Utility Function

A mathematical representation that assigns a level of utility or satisfaction to different bundles of goods, allowing preferences to be compared quantitatively.