The market clearing approach assumes that:
A) people are not able to affect prices that influence their decisions.
B) prices adjust to clear markets.
C) firms are not able to affect prices that influence their decisions.
D) all of the above.
Correct Answer:
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Q13: Money in the model of this chapter
Q14: If a household has ¥2,000 in money
Q15: The market clearing approach assumes that:
A)people are
Q16: Bond holdings and interest income are zero
Q17: In the model of this chapter the
Q19: If the nominal wage rate is £10
Q20: One unit of money in the model
Q21: According to the household nominal budget constraint,
Q22: In the market clearing model, for the
Q23: The maturity of a bond is:
A)the amount
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