The view of the Classical economists regarding the "neutrality of money" was that

Question

Quizplus · Accepted Answer

The Classical economists believed in the neutrality of money, meaning that changes in the quantity of money would not have any effect on real variables in the economy, such as output and employment, but only on nominal variables, such as prices. This view was later challenged by Keynesian economics, which argued that changes in the quantity of money could have real effects on the economy.

The View of the Classical Economists Regarding the "Neutrality of Money