According to the classical dichotomy, which of the following increases when the money supply increases?
A)the real interest rate
B)real GDP
C)the real wage
D)None of the above increases.

Question

Quizplus · Accepted Answer

The classical dichotomy suggests that nominal variables, like the money supply, do not affect real variables, such as real GDP, real interest rates, or real wages, in the long run.

According to the Classical Dichotomy, Which of the Following Increases