If Monetary Neutrality Holds,then an Increase in the Money Supply

question 61

Multiple Choice

If monetary neutrality holds,then an increase in the money supply

• A)increases real but not nominal variables.Most economists think that monetary neutrality is a good description of the short run.
• B)increases real but not nominal variables.Most economists think that monetary neutrality is a good description of the long run.
• C)increases nominal but not real variables.Most economists think that monetary neutrality is a good description of the short run.
• D)increases nominal but not real variables.Most economists think that monetary neutrality is a good description of the long run.

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Definitions:

Semiannually

Happening semi-annually, generally every six months.

Accrued Interest

The interest that has accumulated on a bond since the last interest payment up to, but not including, the present date.

Semiannually

Occurring twice a year, typically every six months.

Accrued Interest

Interest that has been earned but not yet paid or received.