According to the classical dichotomy,when the money supply doubles,which of the following also doubles?
A)the price level and nominal wages
B)the price level,but not the nominal wage
C)the nominal wage,but not the price level
D)neither the nominal wage nor the price level

Question

Quizplus · Accepted Answer

The classical dichotomy suggests that nominal variables, such as the price level and nominal wages, double when the money supply doubles, while real variables remain unchanged.

According to the Classical Dichotomy,when the Money Supply Doubles,which of the Following