Which of the Following Best Represents the View of the Classical

question 121

Multiple Choice

Which of the following best represents the view of the Classical economists regarding money?

• A)Relative prices are determined by the money supply.
• B)The monetary sector influences consumers' preferences and relative prices.
• C)The economy is composed of the real sector and the monetary sector,and the latter does not affect the former.
• D)The distribution of income is affected by the money supply.
• E)The allocation of resources is affected by the money supply.