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Which of the Following Best Represents the View of the Classical

Question 119

Multiple Choice

Which of the following best represents the view of the Classical economists regarding money?


A) Relative prices are determined by the money supply.
B) The monetary sector influences consumers' preferences and relative prices.
C) The economy is composed of the real sector and the monetary sector,and the latter does not affect the former.
D) The distribution of income is affected by the money supply; the real sector of the economy plays no role.
E) The allocation of resources is affected by the money supply; the real sector of the economy plays no role.

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