Monetary Neutrality Means That a Change in the Money Supply

question 225

Multiple Choice

Monetary neutrality means that a change in the money supply

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

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Definitions:

Predictive Validity

The extent to which a test score or instrument can predict the performance or outcomes on relevant future measures.

Criterion-related Validity

A measure of how well one variable or test predicts an outcome based on information from other variables.

Psychotic Tendencies

Propensities or inclinations towards experiencing psychosis, characterized by a disconnection from reality, often involving delusions or hallucinations.

Criterion-related Validity

The effectiveness of a test in predicting an individual's performance on related tasks or outcomes.