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Which of the Following Statements Is NOT True

Question 96

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.

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