According to Classical Theory

question 188

Multiple Choice

According to classical theory,

• A)any deficiency in total demand from declining investment leads to long-term unemployment.
• B)flexible interest rates assure the equality of aggregate saving and investment.
• C)low interest rates discourage economic investment.
• D)active government fiscal and monetary policies are needed to ensure full employment and stable prices.

---

Definitions:

Umbrella

A protective device designed to shield individuals from rain or sunlight, metaphorically used to describe encompassing or overarching entities in various contexts.

Relationship

A connection, association, or involvement between individuals or entities.

Organizational Settings

The physical and social environment in which organizational activities occur, including the culture, structure, and processes within.

Influence Others

The ability to affect the beliefs, attitudes, or behaviors of others through direct or indirect methods, critical in leadership and interpersonal relationships.