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:

Cultural Tools

involve artifacts, symbols, and practices that a society uses to mediate thinking, communication, and understanding.

Time Orientation

The way in which individuals or cultures perceive and value time, which can affect planning, punctuality, and the emphasis on past, present, or future events.

The Present

The current moment or period in time, distinguished from the past and the future.

The Future

An undefined period of time that has yet to occur, often considered in terms of the potential for positive or negative events.