📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      If money is

      neutral,
      A an increase in the money supply does nothing. Correct Answer Incorrect Answer
      B a change in the money supply only affects real variables such as real output. Correct Answer Incorrect Answer
      C a change in the money supply reduces velocity proportionately; therefore there is no effect on either prices or real output. Correct Answer Incorrect Answer
      D a change in the money supply only affects nominal variables such as prices and wages. Correct Answer Incorrect Answer

      Solution

      If money is neutral a change in the money supply only affects nominal variables such as prices and wages.

      Practice Next
      More Research Questions
      ask-question