If Price Expectations Are Assumed to Be Correct,money Demand Is

question 112

Multiple Choice

If price expectations are assumed to be correct,money demand is proportional to income,and net capital flow is infinitely elastic,then the big,comprehensive model corresponds to which of the following special cases?

• A) classical closed economy
• B) classical open economy
• C) IS-LM model
• D) Mundell-Fleming with floating exchange rate

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Definitions:

Companionate Love

Type of love consisting of intimacy and commitment.

Infatuation

A state of intense, often short-lived passion or admiration for someone or something.

Empty Love

A type of love characterized by commitment without intimacy or passion, often found in relationships that have endured beyond the dissolution of physical and emotional connections.

Groupthink

Kind of thinking that occurs when people place more importance on maintaining group cohesiveness than on assessing the facts of the problem with which the group is concerned.