Monetary Neutrality Means That a Change in the Money Supply

question 209

Multiple Choice

Monetary neutrality means that a change in the money supply

• A)does not change real variables.Most economists think this is a good description of the economy in the short run and in the long run.
• B)does not change real variables.Most economists think this is a good description of the economy in the long run but not the short run.
• C)does not change nominal variables.Most economists think this is a good description of the economy in the short-run and the long run.
• D)does not change nominal variables.Most economists think this is a good description of the economy in the long run but not the short run.

---

Definitions:

Use of Fantasy

The engagement with imaginative and often unreal scenarios as a mental escape or a means of creativity.

Denial of Reality

A psychological defense mechanism in which individuals refuse to accept the truth of a situation or fact, often to protect themselves from discomfort.

Fantasy

A genre of fiction that involves magical or supernatural elements not existing in the real world.

Constructive Coping

Strategies that are adaptive and help in managing or overcoming stress and its effects in a positive manner.