According to classical economic theory, which of the following do changes in the money supply affect?
A)nominal variables and real variables
B)nominal variables, but not real variables
C)real variables, but not nominal variables
D)neither nominal nor real variables

Question

Quizplus · Accepted Answer

According to classical economic theory, changes in the money supply affect only nominal variables, such as prices and inflation, and do not affect real variables, such as output and employment.

According to Classical Economic Theory, Which of the Following Do