According to the classical model, money influences
a. only prices.
b. nominal and real variables in both the long and short-run.
c. both nominal and real variables but only in the short-run.
d. only nominal variables.
D
You might also like to view...
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then we would expect Tracy to get a payoff of ________ and Amy to get a payoff of ________.
A. 75; 150 B. 125; 125 C. 300; 200 D. 25; 225
If the quantity of money demanded is less than the quantity of money supplied, then the
A) interest rate will decrease. B) interest rate stays the same. C) interest rate will increase. D) effect on the interest rate is indeterminate.
Refer to the Article Summary. Prior to the initiation of the BRRD, the European Union had essentially been bailing out troubled banks. In doing this, the EU was, in effect, acting as a
A) private equity firm. B) shadow bank. C) lender of last resort. D) conductor of open market operations.
Which of the following was the single largest component of wealth in colonial America?
(a) Land (b) Stocks (c) Bonds (d) Capital