Which of the Following Statements Is NOT True

question 22

Multiple Choice

Which of the following statements is NOT true?

• A) Many agents suffer from money illusion.
• B) Small menu prices lead to price stickiness.
• C) Under adaptive expectations, prices are perfectly flexible.
• D) In the classical dichotomy, all prices are flexible.
• E) Imperfect competition may lead to price inflexibility.

---

Definitions:

Few Options

A situation or condition where there are limited choices or alternatives available.

Additive Strategies

Approaches in problem-solving or decision-making that involve sequentially adding up the value of different options to choose the best outcome.

Elimination By Aspects

A decision-making process where choices are sequentially eliminated for not meeting certain criteria.

Decision Making

The cognitive process of making a choice from a set of alternatives, encompassing judgement, evaluation, and problem solving.