Which of the Following Statements Is Not True

question 82

Multiple Choice

Which of the following statements is not true?

• A)Small menu prices lead to price stickiness.
• B)In the classical dichotomy,some prices are sticky.
• C)In the classical dichotomy,an increase in money supply growth leads to a corresponding increase in inflation.
• D)Short-run contracts lead to price persistence.
• E)Imperfect information may lead to price inflexibility.

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Definitions:

Socialism

A political and economic theory advocating for collective or governmental ownership and administration of the means of production and distribution of goods.

U.S. Congress

The bicameral legislature of the federal government of the United States, consisting of two chambers: the Senate and the House of Representatives.

Socialist Representative

A political representative who advocates for socialism, focusing on social ownership, democratic control of the means of production, and prioritizing social welfare.

Industrial Workers of the World

Radical union organized in Chicago in 1905 and nicknamed the Wobblies; its opposition to World War I led to its destruction by the federal government under the Espionage Act.