Three possibilities have probabilities 0.5, 0.3 and 0.2 and values $10, $20, and $30 respectively. The expected value is:

The Keynesian model is basically

A) a long-run theory. B) a short-run theory. C) a combination of long- and short-run theories. D) a theory about the economy in both the long run and the short run.

The classical dichotomy argues that changes in the money supply

a. affect both nominal and real variables. b. affect neither nominal nor real variables. c. affect nominal variables, but not real variables. d. do not affect nominal variables, but do affect real variables.