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murzikaleks [220]
3 years ago
7

According to the classical dichotomy, when the money supply doubles, which of the following also doubles?

Business
1 answer:
masha68 [24]3 years ago
7 0

Answer: Option (C) is correct.

Explanation:

Correct option: The price level and nominal wages.

According to the classical dichotomy, nominal variables moves proportionately with the quantity of money whereas real variables remains unchanged.

A classical model that is based on the flexibility of prices and wages, conclude that any changes in money supply only affects the nominal variables whereas real variables remains constant. This theory results in the independence of the real variables from any changes in the money supply and nominal variables.

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4. What aspect of project management was omitted from the PMI definition that is included in the definition proposed by Meredith
lukranit [14]

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What accounting assumption, principle, or constraint would Target Corporation use in each of the situations below? (a) Target wa
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In a portfolio problem, X1, X2, and X3 represent the number of shares purchased of stocks 1, 2, and 3, which have selling prices
vaieri [72.5K]

Answer:

The correct solution is "x_1 \leq 0.35 (x_1 + x_2 + x_3)".

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