In the Classical Model

question 33

Multiple Choice

In the classical model,

• A) markets do not automatically clear.
• B) business demand for loanable fund exceeds business planned investment spending.
• C) there is no government sector,only private consumption and planned investment.
• D) businesses engage in interest-free borrowing.
• E) the government's demand for funds is vertical.

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Definitions:

Christian Right

A political and social movement that seeks to advance conservative Christian values, particularly in the context of American politics.

National Debt

The total amount of money that a country's government has borrowed and is yet to repay.

Domestic Policy

Government strategies and decisions specifically related to internal affairs of a country, including education, healthcare, economy, and social welfare.

Foreign Policy

A government's strategy in managing its relationships with other nations, concerning diplomacy, trade, and national security.