The Principle of Monetary Neutrality Implies That an Increase in the Money

question 197

Multiple Choice

The principle of monetary neutrality implies that an increase in the money supply will increase

• A)real GDP and the price level.
• B)real GDP, but not the price level.
• C)the price level, but not real GDP.
• D)neither the price level nor real GDP.

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Definitions:

StdDev

Standard Deviation, a measure of the amount of variation or dispersion in a set of values.

Median

The central number in a series that divides the upper half from the bottom half.

StdDev

A rephrased term for standard deviation, indicating the degree to which individual data points in a set diverge from the mean value.

Mean

A mathematical average of a set of numbers, calculated by adding them all together and dividing by the number of numbers.