1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DaniilM [7]
2 years ago
14

lassical economists argued that A. a flexible interest rate would make saving equal to investment. B. there would always be an e

xcess of saving over investment. C. workers had money illusion. D. excess savings would create unemployment.
Business
1 answer:
Mkey [24]2 years ago
8 0

Answer: A. a flexible interest rate would make saving equal to investment.

Explanation:

Classical economists believe in an invisible hand correcting the economy and so to them price, wages and interest rates are flexible.

They believe that when the interest rate is flexible, it will be able to adjust to prevailing market conditions such that it would entice people to save more which would then be invested in the economy thereby making investment equal to savings.

You might be interested in
How did you identify your customers?
solong [7]
Customers may be grouped by similar variables, such as age, gender, occupation, education, income levels, geographic location, industry, number of employees, number of years in business, products or services offered or other defined criteria.
6 0
3 years ago
According to liquidity preference theory investment spending would rise if the price level
ANTONII [103]

Answer:

A.rose making the interest rate fall

Explanation:

According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.

The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.

4 0
3 years ago
The amount of money you can change to a credit card is called?
babymother [125]
Checking money is the amount of money.
4 0
3 years ago
Read 2 more answers
Assume that the real GDP in Year 2022 is $8000 and the GDP deflator is 200. Calculate the Nominal GDP. Show your work. *
zloy xaker [14]

Answer:

i dont k but I needed points

Explanation:

sorry

6 0
3 years ago
What factors are involved when there is an interaction between a person and an experience?
olganol [36]

Answer:

The correct answer is letter "A": sociocultural factors.

Explanation:

Sociocultural factors represent the behavior of societies in different matters and how they can affect individuals. They are mainly driven by the difference among people in the same community and how they interact. Those factors could be <em>religion, ethnicity, </em>and <em>culture</em> to mention a few.

5 0
2 years ago
Other questions:
  • Angola United Theaters, Inc. is considering opening a new movie theater in Angola, Indiana. The relevant cost of capital is 8%.
    10·1 answer
  • The ________ shows the change in the firm's working capital since the beginning of the year. 1. balance sheet 2. income statemen
    5·1 answer
  • A manager striving to improve organizational ___________ is accomplishing tasks that help achieve organizational objectives. a.
    15·1 answer
  • SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,554,000 Cost of goods sold 761,460 Gross profit 792,540 Oper
    10·1 answer
  • Kathleen just received a bonus from EG. She is excited because her dad started his career with EG. If her bonus of $300,000 is e
    13·2 answers
  • A school at which you are likely to be accepted because you meet graduation requirements is called a:
    7·2 answers
  • During its first year of operations, JKL Company paid $11,065 for direct materials and $11,200 for production workers' wages. Le
    15·1 answer
  • the probabilities that stock A will rise in price is 0.61 and that stock B will rise in price is 0.39. Further, if stock B rises
    5·1 answer
  • The most recurring item on a data list
    9·1 answer
  • Where will your transactions take place? Is the purchaser the user of your product/service?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!