According to the classical dichotomy, what changes nominal variables? What changes real variables?
The classical dichotomy argues that nominal variables are determined primarily by developments in the monetary system such as changes in money demand and supply. Real variables are largely independent of the monetary system and are determined by productivity and real changes in the factor and loanable funds markets.
Economics
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Voluntary export restraints
A) have the same effect as an import ban. B) violate the spirit of international trade agreements. C) are illegal under the international trading rules. D) all of the above.
Economics
Which of the following will tend to result in more proven oil reserves?
A) rising oil prices B) development of oil substitutes C) conservation measures D) all of the above
Economics