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It Would Be Impossible to Deduce the Long-Run Neutrality of Monetary

Question 1

Multiple Choice

It would be impossible to deduce the long-run neutrality of monetary policy without appealing to


A) the negative correlation between interest rates and the demand for money.
B) the negative correlation between investment and the interest rate.
C) the positive correlation between the price level and the demand for money.
D) the positive multiplier relationship between investment and GDP.
E) all of the above.

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