Savings is crucial for economic growth

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Reference no: EM13838568

Classical economists believe that savings is crucial for economic growth because:

a. supply is less important than demand in determining economic output.

b. savings leads to investment spending, which increases output.

c. prices are sticky and will not prevent the economy from adjusting to full employment.

d. the government needs to intervene in the economy and needs savings to do so.

e. the short run is more important than the long run, and economic policy only works in the short run

Reference no: EM13838568

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