Author Question: The demand for money curve is drawn with A) the interest rate on the vertical axis and the curve ... (Read 95 times)

justinmsk · **on:** Jun 29, 2018

The demand for money curve is drawn with

A) the interest rate on the vertical axis and the curve sloping down.
B) the interest rate on the vertical axis and the curve sloping up.
C) nominal Gross Domestic Product (GDP) on the vertical axis and the curve sloping up.
D) nominal Gross Domestic Product (GDP) on the horizontal axis and the curve sloping down.

Question 2

Which of the following is NOT a key assumption of the classical model?

A) There is a single monopoly seller in many markets for goods and services.
B) People cannot be fooled by money illusion.
C) People are motivated by self-interest.
D) Wages and prices are flexible.