Which of the Following Statements Is NOT True

question 96

Multiple Choice

Which of the following statements is NOT true?

• A) Small menu prices lead to price stickiness.
• B) In the classical dichotomy, some prices are sticky.
• C) In the classical dichotomy, an increase in money supply growth leads to a corresponding increase in inflation.
• D) Short-run contracts lead to price persistence.
• E) Imperfect information may lead to price inflexibility.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially concerning liquidity.

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a year or throughout the typical operating cycle of the company.

Net Sales

Total sales revenue minus returns, allowances, and discounts.

Gross Profit

Gross profit refers to the difference between revenue and the cost of goods sold before administrative, overhead, and other expenses.