With respect to the demand side, the classical model excludes ...

[cdr_15]

With respect to the demand side, the classical model excludes
 
  a. exogenous changes in investment
  b. exogenous changes in government spending.
  c. exogenous changes in taxes.
  d. exogenous changes in money demand.
  e. All of the above

Question 2

If the nominal rate of interest on a bond was 7 percent, the inflation rate was 6 percent and an individual was in a 50-percent tax bracket, the after-tax real return on the bond would be equal to
 
  a. 0 percent.
  b. .5 percent.
  c. 6 percent.
  d. 7 percent.
  e. none of the above.

[pangili4]

Answer to Question 1

E

Answer to Question 2

B