The Classicals Believed That When Savings Exceeds Investment

question 236

Multiple Choice

The classicals believed that when savings exceeds investment,

• A)demand is reduced and the economy will go into a recession.
• B)the interest rate will decline and equate savings and investment.
• C)an increase in supply will encourage higher investment spending.
• D)if savings is greater than investment unemployment would reduce savings.

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Definitions:

Dura Mater

The outermost, thick, and durable membrane of the three layers of the meninges that envelop the brain and spinal cord, providing protection.

Sciatic Nerve

A large nerve that runs from the lower back down the back of each leg, involved in controlling the muscles of the back of the knee and lower leg.

Spinal Cord

A major part of the central nervous system that extends from the base of the skull to the lower back and is responsible for transmitting nerve signals between the brain and the body.

White; Gray

Refers to the two types of matter in the central nervous system; white matter consists of myelinated axons, while gray matter contains neuron cell bodies.