Which of the following statements best describes the difference between the Classical and modern views regarding the role of money in the economy?
A) Both schools of thought accept the neutrality of money within the economy.
B) Unlike modern economists,Classical economists believed that the neutrality of money existed only in the long run.
C) Classical economists argued that relative prices are determined by the supply of money,while modern economists believe that the money supply will never affect relative prices.
D) Both Classical and modern economists accept the neutrality of money in the long run,but modern economists question neutrality in the short run.
E) Both Classical and modern economists accept the neutrality of money in the short run,but modern economists question neutrality in the long run.
Correct Answer:
Verified
Q107: Classical economists' belief in the "neutrality of
