You and a friend are arguing over the issue of the nonneutrality of money.You believe that money is not neutral,and to prove your point you would cite all of the following except
A)large gold discoveries that increased the money supply preceded an economic boom.
B)a change in monetary institutions preceded a boom or recession.
C)a change in the leadership of the Central Bank and its policy was followed by noticeable changes in the money supply and a recession or inflation.
D)the fact that every recession was preceded by a drop in the money supply.

Question

Quizplus · Accepted Answer

Option D actually supports the non-neutrality of money by suggesting that a decrease in the money supply precedes a recession. Therefore, all the other options (A, B, and C) provide evidence that supports the non-neutrality of money, while D does not.

You and a Friend Are Arguing Over the Issue of the Nonneutrality