Nominal rigidity is another term for:

Which is true?

a. M1 has been decreasing over the past six months b. The US dollar has value because it is accepted as payment for goods and services c. the US dollar is backed by US gold reserves d. all

The fallacy of composition is the erroneous view that: a. an increase in the supply of money will cause a general increase in the level of prices

b. a small change in an economic variable will have an unrecognizable but significant effect on the economy. c. when two events are associated, the one observed first must have caused the second. d. if something is true for an individual, then it must also be true for a group.