According to the classical dichotomy, which of the following is influenced by monetary factors?
A)the real wage
B)the real interest rate
C)the nominal wage
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The classical dichotomy states that nominal variables such as the nominal wage are only affected by monetary factors, while real variables such as the real wage and real interest rate are influenced by non-monetary factors such as productivity and technology.

According to the Classical Dichotomy, Which of the Following Is