When Economists State That Money Is Neutral in the Long

question 35

Multiple Choice

When economists state that money is neutral in the long run, they mean that in the long run,

• A)fluctuations in the money supply are equally likely to lead to recessions as to expansions.
• B)changes in the money supply have the same impact on the rich as they do on the poor.
• C)the level of output is independent of the nominal money supply.
• D)the price level is independent of the nominal money supply.

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Definitions:

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