Which of the Following Is NOT an Assumption of the Classical

question 291

Multiple Choice

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

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

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Definitions:

Thomas Jefferson

The third President of the United States (1801–1809), a Founding Father, and the principal author of the Declaration of Independence.

Election of 1800

A pivotal presidential election in the United States that resulted in Thomas Jefferson defeating incumbent John Adams, noted for its intense political rivalry and the peaceful transition of power.

Jacobins

A radical and influential political club during the French Revolution known for promoting republican ideals and for their role in the Reign of Terror.

Bill of Rights

The first ten amendments to the United States Constitution that guarantee certain fundamental rights and protections to American citizens, including freedom of speech, religion, and the press.