Monetary Neutrality

question 62

Multiple Choice

Monetary neutrality:

• A) means that a change in the money supply will affect both real GDP and the price level.
• B) definitely applies in the short run.
• C) means that a change in the money supply will affect real GDP, but will not affect the price level.
• D) none of the above

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Definitions:

Motivational Distortion

A cognitive bias causing individuals to see what they wish to see or to hear what they wish to hear, often driven by their desires or fears.

Working Self-Concept

The part of an individual's self-knowledge that is currently active and influencing their thoughts, feelings, and actions at any given time.

Self-Defensiveness

A psychological reaction characterized by the attempt to protect oneself from perceived threats or criticism.

Communication Apprehension

The anxiety caused by having to talk with others.