Which of the Following Statements Best Describes the Difference Between

question 40

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)Unlike modern economists, Classical economists believed that the neutrality of money existed only in the long run.
• B)Both Classical and modern economists accept the neutrality of money in the long run, but modern economists question neutrality in the short run.
• C)Both Classical and modern economists accept the neutrality of money in the short run, but modern economists question neutrality in the long run.
• D)Both schools of thought accept the neutrality of money within the economy.
• E)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.

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Definitions:

Self-Preservation

The natural or instinctive tendency to act in a manner that ensures an individual's survival and well-being.

Safety Needs

Fundamental requirements for personal security, protection from harm, and a stable environment, often ranked as a second-tier need in Maslow's hierarchy of needs.

Social Needs

Fundamental human requirements for belonging, love, and interaction with others, influencing behavior and consumer choices.

Love And Friendship

Deep, affectionate connections between people, where love involves strong emotions and attachment, and friendship is based on mutual respect, appreciation, and shared interests.