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Suppose Changes in the Money Supply Only Affected the Price

Question 14

Multiple Choice

Suppose changes in the money supply only affected the price level and never affected real GDP. If this were the case, it could be viewed as evidence


A) that has no bearing on the theories of either Classical or modern economists.
B) that the modern view of the neutrality of money is correct.
C) supporting both the Classical and modern views of the neutrality of money.
D) that the Classical view of the neutrality of money is correct.
E) that both the Classical and modern views of the neutrality of money are incorrect.

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