The New Classical assumption of how quickly markets clear is actually most appropriate in the analysis of
A)the labor market.
B)the aggregate good market.
C)financial markets.
D)the market for consumer durables.

Question

Quizplus · Accepted Answer

The New Classical assumption of rapid market clearing is most appropriate for financial markets because these markets are highly liquid and can adjust prices quickly in response to new information, ensuring that supply and demand are balanced in a short period of time.

The New Classical Assumption of How Quickly Markets Clear Is