The basic classical model can account for the procyclical behaviour of money if there
A)are real business cycles caused by productivity shocks.
B)is reverse causation from future output to money.
C)are rational expectations among the public.
D)are propagation mechanisms in the economy.

Question

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The Answer of The basic classical model can account for the procyclical behaviour of money if there
A)are real business cycles caused by productivity shocks.
B)is reverse causation from future output to money.
C)are rational expectations among the public.
D)are propagation mechanisms in the economy.

The Basic Classical Model Can Account for the Procyclical Behaviour