Question
Which of the following statements best describes the difference between the Classical and Keynesian views regarding the role of money in the economy? a. Both
Which of the following statements best describes the difference between the Classical and Keynesian views regarding the role of money in the economy? a. Both schools of thought accept the neutrality of money within the economy. b. Classicists argue that relative prices are determined by the supply of money, while Keynesians believe that the money supply will never affect relative prices. C. Both Classicists and Keynesians accept the neutrality of money in the long run, but Keynesians question neutrality in the short run. d. Unlike Keynesians, Classicists believe that the neutrality of money exists only in the long run. e. Both Classicists and Keynesian accept the neutrality of money in the short run, but Keynesians question neutrality in the long run.
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