Which of the following is NOT true according to classical macroeconomics theory?

Question

Which of the following is NOT true according to classical macroeconomics theory?
Use letters in alphabetical order to select options
A
Output is determined by the supplies of capital and labor and the available production technology.
B
Given output and the interest rate, the price level adjusts to balance the supply of, and demand for, money.
C
For any given level of output, the interest rate adjusts to balance the supply of, and demand for, loanable funds.
D
For any given level of output, the interest rate adjusts to balance the supply of, and demand for, money.

Explanation / Answer

Answer : D

Because for any given level of output, the interest rate addjusts to balance the supply of and demand for loanabpl funds.

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