Nelson's father tells him, "Regardless of how much money you have, you cannot buy more goods unless there are more goods available for purchase." This advice is consistent with what economic concept?

Question

Quizplus · Accepted Answer

The neutrality of money is an economic theory suggesting that changes in the money supply only affect nominal variables (like prices) in the long run, not real variables (like the quantity of goods and services produced). Nelson's father's advice reflects this concept by implying that having more money does not increase the amount of goods available, which aligns with the idea that money is neutral in terms of real economic outcomes.

Nelson's Father Tells Him, "Regardless of How Much Money You