Choose the correct answer:
1
In the neo-classical theory, rate of interest is determined by the marginal product of capital and rate of saving.
2
In the neo-classical theory, rate of interest is determined by demand and supply of loanable funds.
3
In the modern theory, rate of interest is determined by the demand and supply of time deposits.
4
In the classical theory, rate of interest is determined by demand and supply of loanable funds.