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Question
Which one of the following statements is true?
A) In the classical model, the supply of saving is determined by the rate of interest.
B) In the classical model, the supply of saving is determined by the level of income.
C) In the Keynesian model, the supply of saving is determined by the rate of interest.
D) In the Keynesian model, the supply of saving is determined by the level of investment.
Answer
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