Which of the following is correct?
a. The classical dichotomy separates real and nominal variables.
b. Monetary neutrality is the proposition that changes in the money supply do not change real variables.
c. When studying long-run changes in the economy, the neutrality of money offers a good description of how the world works.
d. All of the above are correct.
d
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The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than other producers is referred to as:
A) marginal advantage. B) absolute advantage. C) cardinal advantage. D) comparative advantage.
Susan recently purchased a home for $150,000. She plans to rent it out for $1,000 per month for a year. Had the house cost $200,000 instead, her expected rate of return would have:
A. Decreased by 1 percentage point B. Decreased by 2 percentage point C. Increased by 2 percentage point D. Increased by 3 percentage point