Money neutrality implies that changes in the money supply have an impact on

Name: Money neutrality implies that changes in the money supply have an impact on
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Money neutrality suggests that changes in the money supply only affect nominal variables, such as the price level, and do not have a long-term effect on real variables, such as real GDP or the unemployment rate. Therefore, the correct option is C, as changes in the money supply will have an impact on the overall price level.

Money Neutrality Implies That Changes in the Money Supply Have