New Free Workshop on RBI Grade B Descriptive Answer Writing - Join Us!
Register

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.

Practice Next
×
×