According to Keynesians,the primary reason money is NOT neutral is
A)rational expectations.
B)price stickiness.
C)reverse causation.
D)misperceptions over the aggregate price level.

Question

Quizplus · Accepted Answer

Keynesians argue that prices may be sticky in the short run, meaning that they do not immediately adjust to changes in money supply or demand. As a result, changes in the money supply can have real effects on output and employment in the short run, violating the idea of money neutrality.

According to Keynesians,the Primary Reason Money Is NOT Neutral Is