The neutrality of money is the idea that:
A) aggregate price levels do not affect real outcomes in the economy.
B) hard money has a neutral effect in the economy.
C) in real terms, it makes no difference who is spending each dollar.
D) virtual money has a neutral effect in the economy.

Question

Quizplus · Accepted Answer

The neutrality of money suggests that changes in the money supply only affect nominal variables (like price levels) and do not impact real variables (like output or employment) in the long run.

The Neutrality of Money Is the Idea That