The gains from trade rely on overall productivity (absolute advantage)

One of the primary objections to the new classical model is that ________

A) firms could easily get information about price movements and so would not be fooled for very long B) price is negatively related to quantity demanded, but positively related to quantity supplied C) business cycles are relatively brief in duration D) it failed to incorporate rational expectations into its presentation

The demand curve for investment as a function of the interest rate is

a. vertical b. horizontal c. upward sloping d. downward sloping e. the same as the demand curve for saving