The Key Assumption of the Basic Keynesian Model Is That

question 94

Multiple Choice

The key assumption of the basic Keynesian model is that firms meet the demand for their products at preset prices.This means that once a firm has set the price of its product,it

• A) never changes that price.
• B) will only change the price when a customer offers to pay a different amount.
• C) will change the price infrequently.
• D) will change the price when the benefits of doing so outweigh the costs associated with making the change.
• E) will only ever decrease the price of its product.

---

Definitions:

Dendrites

The branched projections of a neuron that receive electrochemical signals from other neurons and conduct them toward the cell body.

Cell Wall

A rigid layer lying outside the plasma membrane of the cells of plants, fungi, and bacteria, providing structure and protection.

Nucleolus

A small, dense structure found within the nucleus of cells, involved in the production of ribosomes and ribosomal RNA.

Actin

A globular structural protein that forms microfilaments, part of a cell's cytoskeleton, and is involved in various types of cell movement and muscle contraction.