According to the Classical Dichotomy, Which of the Following Is

question 207

Multiple Choice

According to the classical dichotomy, which of the following is influenced by monetary factors?

• A)the real wage
• B)the real interest rate
• C)the nominal wage
• D)All of the above are correct.

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Definitions:

Withdrawals Account

An account used to record the amounts withdrawn by the owner from the business for personal use.

Income Summary

An account used during the closing process that summarizes the revenues and expenses of an accounting period to calculate the net income or loss.

Temporary Account

A temporary account is an account that is closed at the end of each accounting period, with its balance transferred to a permanent account.

Real Accounts

Accounts related to assets, liabilities, and equity that are not closed at the end of the accounting period.