Classical Economists Argued That

question 48

Multiple Choice

Classical economists argued that

• A) there would always be an excess of saving over investment.
• B) workers had money illusion.
• C) excess savings would create unemployment.
• D) a flexible interest rate would make saving equal to investment.

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Definitions:

Psychosexual Stage

In Freudian psychology, sequential developmental stages in childhood during which personality formation occurs, focusing on how children manage erotic and sexual impulses.

Physical Maturation

A process of growth and development in which a person's body becomes capable of reproduction, synonymous with puberty.

Electra Conflict

A psychoanalytic theory describing a girl’s psychosexual competition with her mother for possession of her father.

Latency Period

A phase in Freudian psychology referring to an intermediate stage of psychosexual development in children, during which sexual instincts are temporarily inactive.