Economists Sometimes Refer to the Neutrality of Changes in Nominal

question 43

Multiple Choice

Economists sometimes refer to the neutrality of changes in nominal money growth. This neutrality implies that changes in nominal money growth have no medium- run effect on which of the following?

• A) The inflation rate.
• B) Output growth.
• C) The price level.
• D) Nominal money.
• E) Nominal wages.

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Definitions:

Meganational Strategy

A business strategy that emphasizes operating and competing in multiple countries as if they were a single global market.

Capital Investments

Expenditures by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Personal Control

The use of frequent human interaction to enforce control.

Normative Control

Control that gets subunits to adhere to the values of the organization.