The classical dichotomy refers to the idea that the supply of money
A. is irrelevant for understanding the determinants of nominal and real variables.
B. determines nominal variables, but not real variables.
C. determines real variables, but not nominal variables.
D. is a determinant of both real and nominal variables.
Answer:B
The classical dichotomy refers to the idea that the supply of money
A. is irrelevant for understanding the determinants of nominal and real variables.
 B. determines nominal variables, but not real variables.
 C. determines real variables, but not nominal variables.
 D. is a determinant of both real and nominal variables.
