The classical theory of the loanable funds market concluded that
A. Saving and investment would not be equal because of changes in the volume of bank credit.
B. An increase in the desire to save would increase the interest rate and lower the volume of investment.
C. The interest rate would equate saving and investment and thereby undermine Say's law.
D. The interest rate would equate saving and investment and thereby cause Say's law to be valid.
D. The interest rate would equate saving and investment and thereby cause Say's law to be valid.
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