When constructing a basic macroeconomic model, several assumptions (not realistic, but necessary to simplify the analysis) are made.Which of the following are assumed to be constant?
A) the price level
B) the rate of interest
C) the foreign exchange rate
D) the level of government spending
E) All of the above are held constant.
Correct Answer:
Verified
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A)only at equilibrium.
B)always.
C)only
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A)inventory
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