It Would Be Impossible to Deduce the Long-Run Neutrality of Monetary

question 72

Multiple Choice

It would be impossible to deduce the long-run neutrality of monetary policy without appealing to

• A) the negative correlation between interest rates and the demand for money.
• B) the negative correlation between investment and the interest rate.
• C) the positive correlation between the price level and the demand for money.
• D) the positive multiplier relationship between investment and GDP.
• E) all of the above.

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