Which of the following is NOT a key assumption of the classical model?
A) There is a single monopoly seller in many markets for goods and services.
B) People cannot be fooled by money illusion.
C) People are motivated by self-interest.
D) Wages and prices are flexible.
A
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Those economists who believe that monetary policy is more powerful than fiscal policy argue that the
a. LM curve is vertical. b. IS curve is horizontal. c. interest rate elasticity of investment is large. d. interest rate elasticity of investment is small.
A good or service is said to be scarce when:
a. its price is too low. b. it is offered only to high income earners. c. no one wishes to purchase it. d. it cannot be transported easily. e. at a price of zero, there is not enough to satisfy everyone's desire for it.
Whatever specific form it takes, the excise tax is regressive
Indicate whether the statement is true or false
Refer to the information provided in Figure 23.7 below to answer the question(s) that follow.
Figure 23.7Refer to Figure 23.7. In Farley, planned investment varies inversely with income. Farley's planned investment function is represented by
A. Panel A. B. Panel B. C. Panel C. D. Panel D.