Classical Economists Believed That

question 29

Multiple Choice

Classical economists believed that

• A)if saving exceeded investment,prices and interest rates would rise as business accumulated unwanted inventories.
• B)flexible prices and wages could not restore an economy to full employment if the interest rate were rigid.
• C)flexible interest rates,wages,and prices would assure full employment.
• D)voluntary unemployment reflected economic inefficiency.
• E)all unemployment was involuntary.

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Definitions:

Gritty Texture

A rough or coarse texture that feels like fine particles are embedded within it.

Vascular Bundles

Structures in plants that contain xylem and phloem tissues, responsible for the transport of water, nutrients, and sugars.

Ground Tissue

The tissue in plants that makes up the majority of a plant's body, filling the spaces between the vascular and dermal tissue, and involved in photosynthesis, storage, and support.

Pith

The soft, spongy central cylinder of plant stems, providing structural support and storage of nutrients.