Neutrality of Money Is the Idea That

question 19

Multiple Choice

Neutrality of money is the idea that:

• A) changes in aggregate price levels do not affect real outcomes in the economy.
• B) monetary policy conducted by the Fed has no real impact on the economy.
• C) it makes no difference who is spending each dollar in real terms.
• D) there is no difference between fiscal and monetary policy as long as the same amount of money is injected into the economy.

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