The Classical Model Is Based on the Assumption That

question 174

Multiple Choice

The classical model is based on the assumption that

• A) all markets clear
• B) all demand curves are horizontal
• C) all supply curves are vertical
• D) the government's budget is always balanced
• E) the quantity of loanable funds demanded is independent of the interest rate

---

Definitions:

Kinesthetic

Pertaining to the kinesthetic sense, which is responsible for perceiving the position, weight, or motion of muscles, tendons, and joints.

Imitation

The action of copying or mimicking the behaviors, speech, or actions of others as a way of learning or social interaction.

Communication Style

The distinct manner in which an individual expresses themselves verbally and non-verbally, often influenced by personal, cultural, and social factors.