According to classical macroeconomic theory, changes in the money supply affect:a. variables measured in terms of money and variables measured in terms of quantities or relative prices b. variables measured in terms of money but not variables measured in terms of quantities or relative prices c. variables measured in terms of quantities or relative prices, but not variables measured in terms of money neither d. variables measured in terms of money nor variables measured in terms of quantities or relative prices

Question

Nora Shelton

Business

8 September, 08:48

According to classical macroeconomic theory, changes in the money supply affect:a. variables measured in terms of money and variables measured in terms of quantities or relative prices b. variables measured in terms of money but not variables measured in terms of quantities or relative prices c. variables measured in terms of quantities or relative prices, but not variables measured in terms of money neither d. variables measured in terms of money nor variables measured in terms of quantities or relative prices

+1

Answers (1)

Know the Answer?

Kristina Hensley · Answer 1

Answer: The correct answer is " b. variables measured in terms of money but not variables measured in terms of quantities or relative price".

Explanation: According to classical macroeconomic theory, changes in the money supply affect variables measured in terms of money but not variables measured in terms of quantities or relative price.