Multiple Choice
Which of the following statements is NOT true?
A) Small menu prices lead to price stickiness.
B) In the classical dichotomy, some prices are sticky.
C) In the classical dichotomy, an increase in money supply growth leads to a corresponding increase in inflation.
D) Short-run contracts lead to price persistence.
E) Imperfect information may lead to price inflexibility.
Correct Answer:

Verified
Correct Answer:
Verified
Q91: According to reasoning by Milton Friedman and
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Q93: In the classical dichotomy, some prices are
Q94: Usually the yield curve slopes downward.
Q95: The Fed has perfect information about the
Q97: The structure of the short-run model is
Q98: The term structure of interest rates shows
Q99: The link between real and nominal interest
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Q101: Figure 12.8: Output <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6622/.jpg" alt="Figure 12.8: