Classical economists believe that
A. money is neutral.
B. inflation is determined by wage growth.
C. monetary policy should be used to combat recessions.
D. an increase in the real money supply affects output.
Answer: A
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Which of the following is true regarding the game in Scenario 13.5?
A) Only Bull Meat has a dominant strategy. B) Only Deer Meat has a dominant strategy. C) Both companies have a dominant strategy: expand West. D) Both companies have a dominant strategy: expand South. E) Neither company has a dominant strategy.
What is the unbalanced development strategy and how does this strategy create forward and backward linkages into the economy?
The U.S. had the largest trade deficit in 2009 with which of the following countries?
a. Canada b. Japan c. Mexico d. China
Commitment strategies:
A. are not necessary to reach a mutually beneficial equilibrium in repeated games. B. usually fail to work. C. are always needed to reach a mutually beneficial equilibrium in single-round games. D. are not observed in reality.