The classical theory explained interest as a reward for ........

Economics- Phase (I & II) Determination of output and employment

Download Solution PDF

The classical theory explained interest as a reward for

Parting with liquidity

Abstinence

Saving

Inconvenience

All of the above

छोटे Courses बड़े Results

Master Determination of output and employment

Prepare through Micro-courses

Try Now

Explanation:

The classical theory explained interest as a reward for Saving. According to the classical theory, interest is the price paid for saving of capital. Like the value of other things, the price of saving is determined by its demand for and supply of savings.