Most economists believe that after a few years,changes in the money supply change
A)only nominal variables, but not real variables.
B)only real variables, but not nominal variables.
C)neither nominal nor real variables.
D)both nominal and real variables.

Question

Quizplus · Accepted Answer

In the long run, changes in the money supply affect nominal variables like prices and wages but do not affect real variables such as output or employment, according to the classical dichotomy and monetary neutrality.

Most Economists Believe That After a Few Years,changes in the Money