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Question
Which of the following statements is true?a. In a static model, an economy is assumed to start at a point where all variables are constant.
b. In the dynamic model of money, the longer prices take to adjust to shocks, the more longÂlived is the liquidity effect.
c. In the dynamic model of money, all variables are initially growing at an increasing rate but they eventually reach a steady state.
d. Money supply is the only endogenous variable in the dynamic model of money.
Answer
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