Multiple Choice
What was the view of the Classical economists with regard to the "neutrality of money"?
A) The allocation of resources is independent of the distribution of income.
B) The distribution of income is independent of the allocation of resources.
C) The real part of the economy cannot affect the level of money prices.
D) The quantity of money has no effect on any real variables in the economy.
E) Money is neutral in its effect on absolute prices in the economy.
Correct Answer:
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