Which of the Following Is NOT an Assumption of the Classical

question 258

Multiple Choice

Which of the following is NOT an assumption of the classical model?

• A)Wages and prices are flexible.
• B)Investment will lead to money illusion.
• C)People are motivated by self-interest.
• D)Pure competition exists.

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Definitions:

Actions

The process or state of acting or doing something, typically to achieve an objective or in response to a situation.

Freudian Concepts

Ideas and theories developed by Sigmund Freud, including the unconscious mind, defense mechanisms, and the psychosexual stages of development.

Empirically-Oriented Psychologists

Psychologists who rely on observation, experimentation, and statistical analysis to understand psychological phenomena.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.