Which of the Following Statements Best Describes the Difference Between

question 86

Multiple Choice

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.

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Definitions:

Heart Rate

The number of heartbeats per unit of time, usually measured in beats per minute (bpm), indicative of cardiovascular health and physical condition.

Parasympathetic Nerve

A part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity.

Sympathetic Nerve

A part of the autonomic nervous system that generally stimulates the body's fight or flight response.

Capillaries

The smallest blood vessels in the body, responsible for the exchange of water, oxygen, carbon dioxide, and other nutrients and waste substances between blood and tissues.