The classical model indicates that at the equilibrium interest rate, saving is
A. greater than investment.
B. less than investment.
C. unnecessary for investment.
D. equal to investment.
Answer: D
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All of the following are examples of positive statements EXCEPT:
A. Historically higher rates of money growth are associated with higher rates of inflation. B. Higher interest rates are achieved by slowing the growth of the money supply. C. Higher interest rates reduce construction activity. D. Economic output should not be allowed to increase too fast.
The reversal of fortune is strong evidence against the:
A) religious hypothesis of economic prosperity. B) geography hypothesis of economic prosperity. C) culture hypothesis of economic prosperity. D) institutions hypothesis of economic prosperity.
Marginal revenue is defined as
A. the change in total revenue from a unit change in price. B. the change in average revenue from a one-unit change in output. C. the change in total revenue from a one-unit change in output. D. the change total cost from a one-unit change in output.
Which of the following corresponds to the definition of the supply curve?
a. It depicts a positive relationship between income and quantity supplied b. It depicts a positive relationship between technology and prices c. It depicts a positive relationship between prices and quantity supplied d. It depicts a negative relationship between prices and quantity supplied e. It depicts a proportional relationship between prices and quantity supplied