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    Question

    Which of the following is NOT a postulate of the Classical Model of full-employment equilibrium?

    A Wage-Price flexibility Correct Answer Incorrect Answer
    B Perfect information about the market Correct Answer Incorrect Answer
    C Consumption and saving functions depend on income Correct Answer Incorrect Answer
    D The price level moves proportionately with the quantity of money Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Consumption and saving functions depend on income is NOT a postulate of Classical Model of full-employment.

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