One Assumption of the New Classical Model Is That

question 101

Multiple Choice

One assumption of the new classical model is that

• A)wages are "sticky" downward.
• B)prices are "sticky" upward.
• C)the rational expectations hypothesis is correct.
• D)markets are not purely competitive.

---

Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Net Cash

The amount of cash available after accounting for cash inflows and outflows. It can indicate a company's liquidity position.

Financing Activities

transactions that result in changes in the size and composition of the equity capital and borrowings of the entity, as reported in the cash flow statement.

Net Income

The net income a firm retains after deducting all operational expenses and taxes from its gross revenue.