The Classical Dichotomy Argues That Changes in the Money Supply

question 46

Multiple Choice

The classical dichotomy argues that changes in the money supply

• A)affect both nominal and real variables.
• B)affect neither nominal nor real variables.
• C)affect nominal variables,but not real variables.
• D)do not affect nominal variables,but do affect real variables.

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Definitions:

Mediation

A form of alternative dispute resolution where a neutral third party helps disputants find a mutually acceptable solution.

Compulsory Arbitration

A mandatory process where a neutral third party makes a binding decision to resolve a dispute.

Voluntary Arbitration

A method of conflict resolution in which the conflicting parties choose to abide by the decision of an independent third party.

Assertive Behavior

A communication style in which individuals state their opinions and feelings clearly and directly while respecting the rights and beliefs of others.