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    Question

    Classical economists argue that money is neutral

    because
    A prices are fixed in the short run. Correct Answer Incorrect Answer
    B prices adjust quickly to a monetary expansion. Correct Answer Incorrect Answer
    C prices adjust to a monetary expansion only in the long run. Correct Answer Incorrect Answer
    D prices are slow to adjust to a monetary expansion. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Classical economists argue that money is neutral because prices adjust quickly to a monetary expansion.

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