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If savings is less than investment what will happen to interest rates in the Classical model?

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Related questions

According to classical economists, if interest rates are flexible,

A. Savings will equal investment.

B. Saving may be greater than investment.

C. Saving may be less than investment.

D. None of the above.

When inflation occurs some economic agents gain and some lose. Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories? Is inflation still a possible threat? What could cause a rise in inflation? Suggest some possible scenarios.

When inflation occurs some economic agents gain and some lose. Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories? Is inflation still a possible threat? What could cause a rise in inflation? Suggest some possible scenarios.

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