Which of the Following Is NOT an Assumption of the Classical

question 262

Multiple Choice

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

• A) Absence of money illusion.
• B) Wages and prices are flexible.
• C) Government spending is necessary to achieve economic stability.
• D) People are motivated by self-interest.

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Definitions:

Domestic

Pertaining to or occurring within a particular country; not foreign or international.

Promoters

Individuals or companies that organize and finance the formation of a corporation or event.

Subscription Agreements

Contracts between a company and investors, detailing the purchase of shares of the company by the investors.

Infant Corporation

A term used to describe a corporation in its early stage of existence, typically considered less capable of meeting legal or financial commitments.