Monetary neutrality implies that an increase in the quantity of money will increase which of the following?
A)employment
B)the price level
C)the incentive to save
D)no other economic variable

Question

Quizplus · Accepted Answer

Monetary neutrality suggests that changes in the money supply only affect nominal variables like the price level, not real variables like employment or the incentive to save.

Monetary Neutrality Implies That an Increase in the Quantity of Money