The assumption of constant velocity is a critical component of the
a. monetarist model.
b. classical model.
c. real business cycle model.
d. new classical model.
e. all of the above.
E
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If price fixing by competitors is necessary because without it a firm will go bankrupt, is the price fixing legal?
What will be an ideal response?
Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price of a Subway sandwich is $5 and the price of a milkshake is $4. He buys 6 sandwiches and 5 milkshakes
The marginal utility of the 6th sandwich = 25 and the marginal utility of the 5th milkshake = 24. Which of the following is true? A) He is maximizing his utility. B) He is not maximizing his utility and should buy more Subway sandwiches. C) He is not maximizing his utility because he is not spending all of his income. D) He is not maximizing his utility and should buy more milkshakes.