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Dafna11 [192]
3 years ago
15

The classical economists felt that saving would be equal to investment because

Business
1 answer:
lozanna [386]3 years ago
6 0
<span>Classical economists felt this way because of the idea of 'interest rate flexibility'. This means that the classical economists believed in the idea that the economy would even itself out, or that the economy was 'self-regulating'. This lends itself to the idea that saving would be equal to investment because it does not take into consideration any shift in the economy.</span>
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