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The Classical Economists Assumed That Savings Leakages from the Spending

Question 173

Multiple Choice

The classical economists assumed that savings leakages from the spending stream:


A) equal zero because people are too poor to save.
B) equal investment injections because of the operation of the interest rate.
C) exceed investment injections, which causes the level of economic activity to fall.
D) are less than investment injections because of business opportunities created by technological change.

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