3. The classical dichotomy and the neutrality of money The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Lucia spends all of her money on comic books and beignets. In 2015, she earned $18.00 per hour, the price of a comic book was $9.00, and the price of a beignet was $2.00. Which of the following give the nominal value of a variable? Check all that apply. The price of a beignet is 0.22 comic books in 2015. Lucia's wage is 2 comic books per hour in 2015. Lucia's wage is $18.00 per hour in 2015. Which of the following give the real value of a variable? Check all that apply. The price of a comic book is $9.00 in 2015. Lucia's wage is $18.00 per hour in 2015. Lucia's wage is 9 beignets per hour in 2015. Suppose that the Fed sharply increases the money supply between 2015 and 2020. In 2020, Lucia's wage has risen to $36.00 per hour. The price of a comic book is $18.00 and the price of a beignet is $4.00.

answer(b) gdp is not affected by

scott's production of the jewelry box;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.