Saving is not a problem in the classical model because
A) savers and investors are the same people.
B) interest rates are flexible, and savings were channeled into investment.
C) the classical economists assume that saving was beneficial to people for retirement.
D) saving would be spent by consumers eventually.
B
Economics
You might also like to view...
Margaret can use her quarterly savings to buy a teakwood study table for her room or spend it on a small Christmas party with her family. The _____ cost of her enjoyment at the Christmas party would then equal the forgone utility of the study table
a. transaction b. exchange c. opportunity d. direct e. sunk
Economics
Economic forecasting has proven no better than the flipping of coins
Indicate whether the statement is true or false
Economics