In the Long Run, the Key Reason That Money Is

question 43

Multiple Choice

In the long run, the key reason that money is neutral is that

• A)the federal budget is balanced.
• B)prices are flexible.
• C)business cycles have become much milder.
• D)the nominal interest rate must equal the real interest rate.

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Definitions:

Interneurons

Nerve cells within the central nervous system that transmit impulses between sensory neurons and motor neurons.

Reflexes

Spontaneous and almost immediate reactions triggered by an external stimulus.

Excitatory Synapses

Connections between neurons that increase the likelihood of the receiving neuron to fire an action potential.

Inhibitory Synapses

Connections between neurons that decrease the likelihood of the receiving neuron firing, playing a key role in the modulation of neural circuits.