Author Question: One of the primary objections to the new classical model is that ________. A) firms could easily ... (Read 30 times)

magmichele12 · **on:** Jun 30, 2018

One of the primary objections to the new classical model is that ________.

A) firms could easily get information about price movements and so would not be fooled for very long
B) price is negatively related to quantity demanded, but positively related to quantity supplied
C) business cycles are relatively brief in duration
D) it failed to incorporate rational expectations into its presentation

Question 2

The federal government has encouraged home ownership through ________.

A) an increase in home prices
B) an increase in domestic interest rates
C) a decrease in the implicit rent on residential housing
D) allowing mortgage interest to be tax deductible