Author Question: In the new classical model, all wages and prices ________. A) are completely flexible with ... (Read 158 times)

laurencescou

  • Hero Member
  • *****
  • Posts: 593
In the new classical model, all wages and prices ________.
 
  A) are completely flexible with respect to expected changes in the price level
  B) are fixed with respect to expected changes in the price level
  C) are flexible with respect to the value of the dollar
  D) are fixed with respect to the money supply

Question 2

The liquidity preference theory ________.
 
  A) distinguishes between nominal and real quantities
  B) shows that demand for real balances depends on real income
  C) shows that demand for real balances depends on the nominal interest rate
  D) all of the above
  E) none of the above



cswans24

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

For a complete list of videos, visit our video library