If an Increase in the Growth Rate of the Money

question 2

Multiple Choice

If an increase in the growth rate of the money supply results in an equal increase in the rate of inflation with no effect on any real variables, we say that

• A) the classical dichotomy fails.
• B) money is neutral.
• C) money is superneutral.
• D) money is the most preferred store of value.
• E) money is not neutral.

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