Author Question: The policy ineffectiveness proposition of the new classical model suggests that ________. A) ... (Read 21 times)

naturalchemist · **on:** Jun 30, 2018

The policy ineffectiveness proposition of the new classical model suggests that ________.

A) unanticipated policy has no effect on the business cycle
B) anticipated policy can have an effect on the business cycle
C) anticipated policy has no effect on the business cycle
D) legislative policy initiatives have little effect if the executive branch of government is in the hands of another political party

Question 2

In the two-period model, r denotes

A) real income.
B) the nominal interest rate.
C) the real interest rate.
D) current taxes.