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

Question

Quizplus · Accepted Answer

The Classical economists, such as Adam Smith and David Ricardo, believed in the concept of a "real" economy, which is separate from the monetary sector. They believed that the prices of goods and services were determined by the supply and demand in the real sector and that the monetary sector did not affect the production of goods and services. Therefore, choice C is the best answer as it states that the monetary sector does not affect the real economy.

Which of the Following Best Represents the View of the Classical