A useful macroeconomic model
A) is extremely realistic.
B) is simple.
C) never generates testable hypotheses.
D) provides a lot of intricate details.
B
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According to the quantity theory of money, the price level decreases in equal proportion to
A) a decrease in the nominal interest rate. B) an increase in the real interest rate. C) an increase in the income velocity of money. D) a decrease in the money supply.
The model of expectations in which the current level of inflation depends on past levels is referred to as:
A) realized real expectations. B) adaptive expectations. C) rational expectations. D) composite expectations.
Present the case for floating exchange rates
What will be an ideal response?
The additional utility gained from consuming an additional unit of a good is called:
A. marginal utility. B. total utility. C. costly utility. D. a util.