Which of the following best represents the view of the Classical economists regarding money?
A) The allocation of resources is affected by the money supply.
B) The monetary sector influences consumers' preferences and relative prices.
C) The distribution of income is affected by the money supply.
D) The economy is composed of the real sector and the monetary sector, and the latter does not affect the former.
E) Relative prices are determined by the money supply.
Correct Answer:
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