Nominal rigidity is another term for:
A) sticky prices.
B) fixed exchange rates.
C) menu prices.
D) the trilemma.

Name: Nominal rigidity is another term for: A) sticky prices. B) fixed exchange rates. C) menu prices. D) the trilemma.
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Question

Quizplus · Accepted Answer

Nominal rigidity refers to the resistance of prices to change, which is commonly referred to as sticky prices. When prices are not flexible, they can create economic inefficiencies and contribute to market failures.

Nominal Rigidity Is Another Term For