According to the classical model, money influences
a. only prices.
b. nominal and real variables in both the long and short-run.
c. both nominal and real variables but only in the short-run.
d. only nominal variables.
D
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In general, the more parties there are to a negotiation, the more difficult it becomes to successfully reach an agreement with all parties
Indicate whether the statement is true or false
The government of Bassaland is looking for new revenue sources. It is considering imposing an excise tax on two goods: palm wine and diapers
If the price elasticity of demand for the goods are -0.47 and -1.89 respectively, which good should it tax if the goal is to raise revenue? If the government wants to tax only one good, which good should it tax if the goal is to discourage consumption? Explain your answer.