Which of the following statements is true?
A)The ATM model of money is a generalequilibrium model.
B)The opportunity cost of holding money in the ATM model increases when the nominal interest rate declines.
C)In a general-equilibrium model, most of the key macroeconomic variables are exogenous.
D)Normally, results from a general equilibrium model can be applied to a wider range of problems than the results from a partial-equilibrium model.

Question

​Which of the following statements is true?
A)​The ATM model of money is a general­equilibrium model.
B)​The opportunity cost of holding money in the ATM model increases when the nominal interest rate declines.
C)In a general-equilibrium model, most of the key macroeconomic variables are exogenous.
D)​​Normally, results from a general equilibrium model can be applied to a wider range of problems than the results from a partial-equilibrium model.

Quizplus · Accepted Answer

General-equilibrium models consider the interactions between multiple markets and variables, making their results applicable to a wider range of problems compared to partial-equilibrium models, which focus on a single market.

​Which of the Following Statements Is True

Which of the Following Statements Is True