The Concept of Monetary Neutrality in the Classical Model Means

question 40

Multiple Choice

The concept of monetary neutrality in the classical model means that an increase in the money supply growth rate will increase:

• A)real GDP.
• B)real interest rates.
• C)nominal interest rates.
• D)both saving and investment by the same amount.

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Definitions:

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A process through which an individual becomes less responsive or sensitive to a stimulus after repeated exposure.

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The physiological and psychological process of becoming sexually stimulated.

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The branch of biology that studies the inheritance of physical and behavioral traits from one generation to another through DNA.

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The effects that the customs, beliefs, and social behavior of a society have on individuals and groups within that society.