A classical dichotomy refers to the fact that
A) classical theory predicts negative effects of high inflation.
B) the real variables in the model are determined independently of the money market.
C) the real variables are jointly determined depending on what happens in the money market.
D) the real interest rate differs from the nominal interest rate.
E) real and nominal variables are often different.
Correct Answer:
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Q24: The monetary intertemporal model contains the fact
Q25: The monetary base includes
A)M0 and M1.
B)inside money.
C)all
Q26: In the monetary intertemporal model, changing M
A)has
Q27: The quantity of money in circulation is
Q28: The real interest rate is approximately equal
Q30: In the monetary intertemporal model, the supply
Q31: An open-market operation refers to
A)changing the money
Q32: Unconventional monetary policy includes
A)money growth targeting.
B)negative nominal
Q33: Buying an item with cash would be
Q34: The demand for money is determined by
A)the
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