Saving Is NOT a Problem in the Classical Model Because

question 257

Multiple Choice

Saving is NOT a problem in the classical model because

• A) the classical economists assume that saving was beneficial to people for retirement.
• B) saving would be spent by consumers eventually.
• C) interest rates are flexible, and savings were channeled into investment.
• D) savers and investors are the same people.

---

Definitions:

Bilateral Contract

A mutual agreement between two parties where each promises to perform an act in exchange for the other's performance.

Offeree

Offeree is a legal term referring to the party to whom an offer is made in contract law, who can then accept, reject, or counteroffer.

Requested Act

A specific action or operation that someone asks or formally requires someone else to perform.

Title Deeds

Legal documents proving ownership of property or land.